Best Pension Annuity Deals
Hey, Stan The Annuity Man here. You're looking for the best pension annuity deals, hey, that's a good thing because pensions are good. Why? Because you can never outlive the income, just like Social Security. And if you work for the government, there are pensions there, but most people are working in the private sector, so they really don't have pensions. You're going to have to take the money that you have and convert it into a pension. There's only one product that can do that. There's only one product on the planet that provides a lifetime income stream that you can never outlive. That's the benefit proposition that's unique to an annuity. So, we will go through all that: the pricing, the history, how it all started, and how to choose. And at the end, if you hang in there with me, I'll tell you how to download all of my annuity owner's manuals for free. Hang in there and I'll let you know how to get them.
If you're looking for pension annuities, you have to understand that when you buy an annuity and at the time you take the payment, the pricing is primarily based on your life expectancy, or if you're joint with a spouse or a partner, it's life expectancies at the time you take the payment. Interest rates play a secondary role in the pricing. So, most annuities on the planet are put here for income. You have Single Premium Immediate Annuities, which I call for income now; you have Deferred Income Annuities and Qualified Longevity Annuity Contracts for when you want to turn on income later. And then you have what's called an Income Rider that you can attach to a deferred policy, like a Variable Annuity or an Index Annuity, that's for income later as well.
I know I just threw a lot at you. You're like, what language are you speaking? Here's the thing. At the end of the day, you have to tell me when you want the income to start and how you want it structured, either your life or your wife's spouse, partner's life, or joint. And then you have to make sure you tell me, hey, if we die in a fiery plane crash, I want all the unused money to go to my beneficiaries. If you speak plain English to me like that, then we can provide the quote that shows you the highest contractual guarantees on the planet. That's the most basic way to go about it.
The Two Questions
I only have two questions: what do you want the money to contractually do, and when do you want those contractual guarantees to start? From there, we quote every single carrier on the planet, just like when you buy a plane ticket, so that we can find the best deal for you for your specific situation. Do understand, though, that every week to 10 days, the quotes expire, kind of like a gallon of milk, and then you have to get them re-quoted unless you've started the paperwork process as well, and we can help you with that if you decide to move forward.
I get a lot of calls like this. I got one the other day that someone was retiring from their company, and they're getting a pension offer from their company. And they wanted me to do a quote to see if an Immediate Annuity would beat the pension offer from their company. Now, I would love to do that for you, but I'm going to tell you, 90% or more of the time, your company's quote is going to be higher than, say, the street, the Immediate Annuity quote, and you say, well, that didn't make sense. Why would that be? Well, think logically about it. Your company wants to hang onto the money, right? They want to avoid coming up with some lump sum to give you. They want to give it back to you over your life expectancy. So, we will quote it to make sure because I want you to choose the highest contractual guarantee, and if that's the company you're leaving, that's fine.
The only thing in the back of your mind is that I told this gentleman as well, you have to look at your company's Claims Paying Ability. Can they back up that claim? Can they pay you for the rest of your life? And if it's a little marginal, you might want to go to an Immediate Annuity with a very large, highly rated carrier just to ensure that that lifetime income stream guarantees we will be there.
The other thing I'll tell you, and I told this gentleman, is to ensure you're quoting apples to apples. In other words, if you have a pension offer, fax, email me, or PDF it to me, and we'll do an apples-to-apples quote so you can make an excellent decision. But most of the time when that happens, your company's pension offer will be higher than an Immediate Annuity offer on the street.
They Are Customizable
Are you still with me? That's good. Okay, where does it fit? Where can you use them? Any account, non-IRA, IRA, Roth IRA. Obviously, those are taxable situations. So, you have to look at Roth IRAs as non-taxable. But we can quote in all of those. The customization of the quote is very important. You tell me exactly how you want it to work, and we can ensure that it will do that contractually. Most people have this opinion about pension annuities: When they die, when their Learjet hits the mountain, everything goes poof, and the insurance company keeps the money. That's not true. That's one way to quote it, but there are about 30 ways to quote it.
Most people say, you know what, Stan, I want to make sure that me and my partner, my spouse, my wife, want a lifetime income stream. When I die, I want it to continue uninterrupted and unchanged for them, but when they die, that second person dies; we want to make sure that 100% of that money goes to the family. We can do that. Even though the annuity company's on the hook to pay, we can ensure that 100% of every penny you put in that annuity will need to go to you, your spouse or partner, or your family.
Where Do They Fit?
Okay, so where does that pension annuity fit? It's a gap filler. You have your income floor; you have your social security. If you have a pension, that's great. If not, you're filling it in with this: dividend income, real estate, etc. Now, I've done a pretty extensive video about Single Premium Immediate Annuities. I'd encourage you to look at that because I dig deeper into that type of pension annuity. That's one of about three or four out there, but that's the one that starts income immediately. But at the end of the day, pension annuities, income annuities, and lifetime income guarantees from annuity companies are gap fillers. They're transfer of risk lifetime income guarantees. And that's a good thing. If you say, "Hey, Stan, what's my ROI? What's my return on investment?" My answer is there's no ROI until you die. Up until then, it's a pure transfer of risk.
So, you've hung in there with me; let's talk about these books I keep flying in front of you. There are six owners' manuals: Immediate Annuities, Index Annuities, QLACs, Deferred Income Annuities, MYGAs, and Income Riders. You can download all of them for free. Click on this link, and it will take you over to download them right away. How impressive is that? By the way, feel free to contact me anytime by booking a call with us, and I'll see you next time.
Never forget to live in reality, not the dream, with annuities and contractual guarantees! You can use our calculators, get all six of my books for free, and most importantly book a call with me so we can discuss what works best for your specific situation.