Personal Pension: Questions You Need to Ask

• What kind of lifestyle do you expect to maintain once you retire?
• What life income, like 401(k), pensions, or social security, do you have to support your lifestyle?
• How much essential income do you need?
• How much discretionary income do you need?
• What financial instruments do you have to ensure you can sustain your lifestyle if you or your spouse requires extended healthcare services?
• Have you factored in the obstacles and bumps in the road ahead when it comes to your current income plan?

Sadly, not many Americans are certain about their financial health during their retirement years. Even those people who have pensions understand that it may not be sufficient for them.

Traditional Financial Instruments That We Still Use

1. Pensions: Many Americans used to think that their company pension would be enough for their retirement years. However, we now understand that we need more money. These days, most Americans do not rely on their companies for their retirement financial health but are setting up their own 401(k) plans. However, when it comes to the 401(k) plans, we keep our fingers crossed and hope for the best financial returns. Plus, other than what the company matches, it is our own money that we are saving and will be spending in the future.
2. Social Security: For most retirees, their social security will continue to provide for them through the rest of their lives. However, these people will need all the financial help they can get since they do not have enough money saved on their own.
3. Personal Savings: If you are planning for retirement, this is one of the most important aspects of saving. Retirees still need to protect their retirement savings from tax. However, this is where most financial plans are inadequate.

Converting Personal Savings Into Guaranteed Retirement Income

There are many options for creating a retirement plan. However, people who have already retired or are near retirement have their options narrowed down. There is a big difference in how you should invest your money during your working years as opposed to after your working years. However, most financial advisors give you the same financial advice because they say it is in your best interest.

But is it really?

Many financial advisors will offer you pension plans based on historic stock market performance and show that your money will be safe and adequate. However, these scenarios are not guaranteed. Equities, however, offer you guaranteed retirement income and are safe places for people to invest some portion of their savings.

The personal pension is a simple idea which is why it is making a comeback these days. It involves separating your essential income and discretionary income needs, how much more income you will need in the future, how many available assets you have for income today, and how much income they will provide. After this, all we need to determine is to find out how much funds you will need and when you will need them.

These days, many Americans are opting to take out their money from at-risk places and keep it in safe places, at the cost of potential for greater returns, so that they can get guaranteed income for life.

We can help you answer the question of how much it will take to generate the guaranteed income you need.

The Personal Pension Plan is flexible and personalized to meet every person’s needs. To create an efficient Personal Pension Plan for you, we will need to answer questions like how much funds you will need, when you will need them, and consider your special wants and needs. In addition, we will add a very important protection element to your income so that when it is time to cash in your funds, your income will not be depleted or disrupted.

So, does your current financial plan involve two of the most crucial aspects of an effective retirement income plan: protection and guarantee?

Reach out to us today to know more about fixed annuities and why they are a great option for your Personal Pension Plan.