No pension? Create Your Own!
PERSONAL PENSIONS WITH A CAS®
The greatest challenge of retiring without a pension is recreating your paycheck by pulling from your investments and savings, without running out of them.
What if there was a solution that can provide a lifetime income stream and lower your risk of outliving your savings?
Annuities do exactly that, and are the only tools in the Financial Services industry that offer protected lifetime income and 100% principal protection*. Let a Certified Annuity Specialist® (CAS®) help you create an income stream you can't outlive!
The more you have, the more you need to protect
Can you answer YES to these questions?
Is any of your portfolio protected?
Retirement success begins with a strong start. The last five working years and first five years in retirement is a critical time period.
Poor investment performance during this timespan can have massive and irreversible impacts.
Allocating a portion of your portfolio in a principal-protected annuity can help reduce certain risks, including the dreaded "sequence of returns risk".*
Is your income secure & reliable?
A balanced retirement plan should include a reasonable amount of guaranteed income.
Retiring without a traditional pension leaves you with Social Security as the only source of secure and reliable income.
With higher income stability that lifetime income annuities provide you can feel more confident about retirement and achieving your goals.*
Are your core expenses covered?
Your basic expenses will be there for your entire lifetime.
Matching your secure & reliable income sources to these life-long expenses can help ensure your bills will always be covered.
By repositioning a portion of your portfolio to an annuity that provides protected lifetime income, more of your expenses can be covered by reliable and predictable sources.*
What will you spend in retirement?
Average monthly income and expenses for households with residents 65 and older.
US Bureau of Labor Statistics
WEST
After-Tax Income: $4,277
Expenses: $4,930
Core Expenses
Housing: $940
Utilities: $317
Food (in & out of home): $602
Medical: $595
Clothing (and services): $113
Transportation: $664
Entertainment: $283
MIDWEST
After-Tax Income: $3,657Expenses: $3,965
Core Expenses
Housing: $703Utilities: $295Food (in & out of home): $497Medical: $571Clothing (and services): $94Transportation: $602
Entertainment: $257
SOUTH
After-Tax Income: $3,468
Expenses: $3,832
Core Expenses
Housing: $617Utilities: $303Food (in & out of home): $499Medical: $528Clothing (and services): $82Transportation: $639
Entertainment: $205
NORTHEAST
After-Tax Income: $4,085
Expenses: $4,319
Core Expenses
Housing: $990Utilities: $321Food (in & out of home): $603Medical: $554Clothing (and services): $130Transportation: $533
Entertainment: $209
Annuities vs. Life Insurance
Think of annuities as the opposite of life insurance. Life insurance protects against the risk of dying too soon. Annuities protect against the risk of living too long.
Will your Wealth Span match your Life Span?
58% of non-retired Americans don't expect their income to last their lifetime*
58%
1 in 2 couples that reach age 65 will have one spouse live to age 90 or later**
50%
Early 1980s: 60% of companies offered pension plans***
60%
2020s: only 4% of companies offer lifetime pensions***
4%
Pop Money Quiz
What was the percentage increase at which Americans ages 65-74 filed for bankruptcy between 1991 to 2016?
A) 73%
B) 216%
C) 480%
D) 110%
Answer: C) 480% The percent of bankruptcy filers ages 65-74 increased from 2.1% of the bankrupt population in 1991 to 12.2% in 2016*, with high medical expenses faced by seniors as the main reason behind the surge in elderly bankruptcy filings.
Remember...Medicare does not cover everything. And with no pension in retirement, losing your assets is the same as losing your income.
Why use annuities in retirement? Two words: FINANCIAL SECURITY
Protection from Creditors & Lawsuits
In most states annuities that are classified as insurance products, such as fixed annuities and fixed index annuities, are protected from lawsuits and creditors via state exemptions or federal retirement exemptions. (annuity exemptions vary widely by state)*
Protected Lifetime Income
Having enough monthly income is the most important retirement issue for non-retired people**. Without monthly checks from a traditional pension, annuities offer an attractive choice for those looking to ensure a steady flow of monthly income that can last for one or even two lifetimes.
Asset Protection
Uncertainty is the only thing that is certain. Market ups and downs will go on throughout the remainder of your life. In contrast, annuities are the only tool in the financial services industry that can offer protection from loss*** while at the same time allowing for potential growth.
Annuities: Did you know?
THREE BASIC ANNUITY TYPES
Fixed Annuities (FA)
A Fixed Annuity is an insurance product that guarantees a fixed rate of interest over a fixed period of time, where the interest is tax-deferred until withdrawn.
The insurance company also offers guarantees where periodic payments can be for a set amount for a fixed period, such as 20 years, or an indefinite period, such as your lifetime*.
FAs are not securities and are not regulated by the SEC. FAs are regulated by state insurance commissioners.
Variable Annuities (VA)
A Variable Annuity is a contract between you and an insurance company that serves as an investment account which offers a range of investment options, typically mutual funds.
The value of your contract will vary depending on the performance of the investment options you choose.
VAs also offer insurance features, such as protected lifetime income and beneficiary benefits*. VAs are registered securities with the SEC.
The value of your contract will vary depending on the performance of the investment options you choose.
VAs also offer insurance features, such as protected lifetime income and beneficiary benefits*. VAs are registered securities with the SEC.
Indexed Annuities (IA)
An Indexed Annuity is a contract with an insurance company designed to provide potential for growth of a chosen market index while allowing for downside protection.
The trade off for downside protection is that the upside is capped on positive returns. Those calculations are referred to as "index crediting methods".
Protected lifetime income and beneficiary benefits* can be added. Most IAs are not regulated by the SEC.
Fee-Based Annuities are HERE!
A new generation of annuities has been designed for a fee-based advisory relationship*, with:
- No up-front commissions
- No annual policy fee
- Lower Mortality & Expense fees
- No surrender charges (a.k.a. CDSC: Contingent Deferred Sales Charge) (1)
Build your own pension with a CAS®
Turn assets in to Protected Lifetime Income
Social Security, Defined Benefit Plan pensions and personal annuities are all sources of lifetime income in retirement and are all structurally the same. You pay in to a system where the amount you pay in determines how much lifetime income you get paid out. This is why Social Security and pensions fit the technical definition of an annuity.
Instead of paying taxes to the Social Security Administration or deducting money from every paycheck to fund your company’s Defined Benefit Pension Plan, you direct your money to an insurance company to fund your own personal annuity that will pay you income for life.
All three sources of lifetime income are geared the same. However, more people retire every year with only one of these lifetime income sources.
Instead of paying taxes to the Social Security Administration or deducting money from every paycheck to fund your company’s Defined Benefit Pension Plan, you direct your money to an insurance company to fund your own personal annuity that will pay you income for life.
All three sources of lifetime income are geared the same. However, more people retire every year with only one of these lifetime income sources.
Annuities date back to the Roman Empire and were widely used throughout the Middle Ages in Europe. Nowadays in the U.S., personal annuities are providing lifetime income to millions of Americans.
Benefits of owning an annuity in retirement:
- Protected Lifetime Income
- Joint (Spousal) Protected Lifetime Income
- Principal Protection
- Beneficiary Benefits
- Growth Potential
- Tax-Deferred Growth
- Customizable Benefit Riders
- No Annual Contribution Limits
Annuities get a bad rap because annuities aren't for amateurs. A Certified Annuity Specialist® can be your guide to what may become one of your most important assets.
Annuities: Did you know?
CAPTIVE AGENTS vs. INDEPENDENT BROKERS
The majority of insurance products, such as annuity contracts and life insurance policies, are sold to the public through two different distribution models. "Captive Agents " and "Independent Brokers".
The debate over the legality of who is acting as an agent, broker and fiduciary leaves plenty of gray area.
However the differences to each model are clear.
Captive Insurance Agents
Captive insurance agents, also known as "career agents," exclusively represent a single insurance company and are contractually obligated to only sell that specific company's insurance products or annuities.
In addition to earning commissions, these agents receive an annual salary, comprehensive benefits, and leverage the support of their insurance company's marketing and operations departments.
To cover these additional costs, captive insurers often charge higher premiums and annuity fees. This exclusive arrangement raises concerns about fiduciary duty.
With limited flexibility to offer alternatives, this inherent conflict can impact the agent's ability to act solely in the best interests of the client.
Independent Insurance Brokers
Independent insurance brokers prioritize their allegiance to their clients, functioning as independent contractors without exclusive ties to any single insurance company.
This can be advantageous to the insurance buyer, as independent brokers appointed with numerous insurance companies have the ability to shop around for the best products and solutions that best meet their clients specific goals and needs.
Captive agents and independent brokers both accept their roles as fiduciaries to the public. However the differences are clear.
At thrivealike, our licensed Financial Professionals unanimously advocate for being independent insurance brokers to prioritize our clients' interests.
We Choose To Be Independent
Why? Because we prioritize our clients' needs above all else, and have the flexibility to shop around to numerous insurance companies to find the right solutions from the best companies, and at the lowest costs.
A Certified Annuity Specialist® can help identify what fits your needs.
- Low Cost, Fee-Based Annuities
- Best Available Lifetime Income Payout Rates
- Highest Rated Annuity Companies
- Best Available Add-On Benefits
- Fee-Based Investment Only Variable Annuities (IOVA)
Appointed with, but not limited to...
With no pension to fall back on you owe it to yourself to explore how this often misunderstood retirement planning tool can play a key role in building a secure foundation of income you can't outlive.
Get started with a Certified Annuity Specialist® today!
Personal Pensions with a CAS®
No two annuities are exactly the same.
Fees vary by type of annuity, the issuing company and addition of optional benefits.
A Certified Annuity Specialist® will analyze your specific financial situation and lifetime income needs to determine if an annuity is right for you, and which type of annuity and benefits suit your needs and risk tolerance.
What You Get...
- Lifetime Income Needs Analysis with a CAS®
- CAS® Advanced Annuity Analysis and Selection
- thrivealike Certified Annuity Specialist® as your personal Financial Advisor
- Actionable and on-going advice from your dedicated thrivealike Financial Advisor & CAS®
- thrivealike Virtual Onboarding
- Variable Annuity Investment Fund Analysis with a Certified Fund Specialist® (CFS®)
- Evaluation of existing annuity policies
- Personal Financial Website
- Encrypted Digital Vault
- Retirement Income Plan with your CAS®
- Virtual Review Meetings (your choice of semi-annually or quarterly)
- Access to Goal-Based Planner with annuity AUM b/w $60,000 - $100,000
- Access to Cash Flow Planner + Goal-Based Planner with annuity AUM b/w $100,000 - $140,000:
- Access to Advanced Planner + Cash Flow Planner + Goal-Based Planner with annuity AUM above $140,000
- Interactive Variable Annuity Fund Allocation
- And More...
Not sure where to start? Schedule your free consultation with a thrivealike Financial Professional
The idea of retirement is an exciting time in one's life, but without a pension it can also be a scary prospect. One way to help ease the anxiety and become more confident about your financial future would be working with someone who is trained to find solutions to the risks and challenges you will face in retirement.
1. Share a little info
Create your financial snapshot by sharing basic information about you and your finances, what stage of Retirement Planning you are in (pre or post), and your current plan to recreate your paycheck in retirement without having a pension .
2. Free consultation
Uncover the potential of your retirement goals in just 15 minutes! Your virtual consultation with a thrivealike Financial Professional will give you an understanding of where you stand and what it will take to get you closer to financial freedom.
3. Decide to thrive
Harness the power of financial expertise with a thrivealike Certified Specialist who will create a customized plan with investment strategies tailored for you and the unique challenges you face when retiring without a pension.
Don't wait...Schedule your free consultation below
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INVESTMENT & RETIREMENT INSIGHTS
* Alliance for Lifetime Income, Protected Lifetime Income Index Study – Wave 2 - July 2019** Social Security Administration, “When to Start Receiving Retirement Benefits,” 2021*** CNN Money, “Ultimate Guide to Retirement,” October 19, 2021
*The information provided is for general informational purposes only and is not intended to, and does not, constitute legal advice.**Protected Lifetime Income Index Study: 2019***Fixed and Fixed Index Annuities do not lose value. ***Variable and Index-Linked annuities may lose value.
(1) For Fee-Based Annuities: With variable annuities, a contract charge and subaccount charges may apply. A market value adjustment (MVA) may apply to withdrawals from fixed index annuities and registered index-linked annuities. The MVA may result in an increase or decrease to amounts removed from the contract. In addition, withdrawals from registered index-linked annuities may be subject to an interim value calculation.