No Company Pension? Make your own!
The number of companies that offer pensions has declined over the years. Government and Union jobs still offer them though.
Most private companies have opted out in favor of funding their employees’ 401 K plans. If you're not financially focused and you don’t show much interest in the stock or bond markets, you may end up with sub-standard retirement savings.
The Remedy?
Make Your Own Pension!
How do you do that?
First, if your financial planner has a Life and Health Insurance license, that’s a reasonable place to start. If not, find a reputable Life Insurance Agent who specializes in retirement planning.
Caution: If your planner is both Stockbroker and Life Agent, they may steer to the product that pays the best commissions. So, it’s good to get a second opinion
If your financial planner smart, they will discuss Annuities with you. Payments into an annuity are Tax Deferred just like a 401K and they can be designed to provide you or you and your spouse a lifetime income – just like a pension. There is a wide variety of Annuities, so you’ll want someone with experience to discuss them with you.
Oh, One Thing: A properly designed Annuity can be better than a pension offered by your employer!