I Have A Pension. Do I Need An Annuity?

November 13, 2021

On a semi-regular basis, I get the question, “I already have a pension.  Do I need an annuity?”, or “I’m thinking about taking the lump-sum option and purchasing an annuity.  What do you think?”  

Although this question is less frequent as the years go on because fewer and fewer people have a Defined Benefit pension, it is one I take very seriously.  Those of you who know me, and my background of starting Atlas Financial Strategies, know that I started this company after 7 years of research looking for a suitable replacement to my own Defined Benefit pension that was changed to a Defined Contribution.

The insurance/annuity industry is the only industry that offers financial products that closely mimic the safety and guarantees of a Defined Benefit pension.  So, if you do not have a guaranteed pension, then an annuity should definitely be considered to add to your portfolio and income plan.

But what if you already have a guaranteed income from a pension?  Do you need an annuity?

In the video below, I give my answer using two recent case studies where this question came up, along with the figures I used to give my solution. 

I will demonstrate the following in this short video:

  • How using an annuity in conjunction with your pension could allow you to take the highest payout
  • How using an annuity in conjunction with your pension could replace lost survivorship benefits
  • How using an annuity in conjunction with your pension could leave you with a larger legacy benefit for heirs

Give it a watch and if you have any questions, feel free to reach out!

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Watch this short video series to learn which annuities I use and how I use them to get an average of 20% more spendable retirement income than any other advisor plans you've seen.

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