The Number 1 Concern for Retirees with Pensions (the surviving spouse)

Summary

The primary concern for retirees with pensions is ensuring sufficient income for the surviving spouse after the pension owner's death.

Abstract

Pensions are a valuable source of guaranteed income for retirees, providing a lifelong income stream that addresses the top retirement concern: running out of money. However, many retirees are unaware of a significant drawback related to survivorship benefits. Upon the pension owner's death, the pension income often drastically reduces, which can create a financial gap for the surviving spouse. To mitigate this risk, retirees can either take a lump-sum pension payout and invest in a joint annuity from a private company or ensure the pension owner has adequate life insurance to cover the potential income shortfall. The article encourages readers to engage in further discussion and offers resources for additional information on retirement planning and financial strategies.

Opinions

Pensions are highly regarded for offering guaranteed income that retirees cannot outlive.
The reduction in pension income upon the pension owner's death is a critical issue that many retirees may not be fully aware of.
There are two suggested strategies to address the income gap for the surviving spouse: opting for a lump-sum pension payout and purchasing a private joint annuity, or securing sufficient life insurance coverage.
The author emphasizes the importance of considering the survivorship benefit when planning for retirement income.
The article advocates for proactive engagement and offers additional resources to help readers navigate retirement planning effectively.

The Number 1 Concern for Retirees with Pensions (the surviving spouse)

(don’t forget to checkout the video too)

Pensions are a great source of guaranteed income for retirement. 😎

They provide an income stream that you can NEVER outlive.

This helps address the number 1 concern for people in #retirement ….

Running out of money.

But, a lot of company pensions have a big drawback that a lot of people aren’t aware of.

It’s the survivorship benefit.

So many retirees have all of their retirement income completely covered with a pension…

Unless the pension owner dies 😳

That’s when the pension income is often REDUCED DRASTICALLY.

This isn’t the end of the world but it’s a very important point to consider.

The 2 ways to fill this gap are to either take the lump-sum on the pension and utilize a joint annuity through a private company…

Or have the pension owner carry enough life insurance to ensure that the income gap is covered.

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To your success,

Matt