As of 2023, only 21% of Americans in non-government jobs were enrolled in a pension plan.* If you're one of the lucky few who will get a pension when you retire, congratulations!

But before that happens, you'll face one big decision: choosing a single-life payout or a joint-life payout. Here's what this means:

  • Single-Life Payout: your pension check arrives each month until you pass away. Payments stop upon your death; your spouse receives nothing. The monthly amount you receive with this choice is higher than with a joint-life payout.
  • Joint-Life Payout: your pension check arrives each month. After you pass away, your spouse receives the check, although it may be for a smaller amount. The monthly amount you receive with this choice is lower than with a single-life payout.

So...should you take the larger amount, and leave your spouse on his or her own? Or try and provide for them later by living on a lesser amount now? Before you make your choice, I'd like to show you a way you can do both.

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Asset Maximization with a Pension

Using this strategy, you take the single-life payout option for your pension and use the extra money to buy a whole life insurance policy for yourself. That policy pays a tax-free death benefit to your spouse when you pass away.

He or she can invest that money and use it replace the pension checks they would have received under the joint-life payout option. If your spouse passes away first, you can cash in the policy and use the extra money to support your own retirement.

➡️ Want to talk to a real person about maximizing your financial assets? Call or email me for a personalized consultation!

Things to Consider

The first thing you need to know is: are you a good candidate for life insurance? This strategy hinges on you being accepted for life insurance. Ideally, you want the policy in place before you retire. If you're in good health, you're an excellent candidate. If you have a few minor health issues, we'll help you find a policy that fits in your budget.

We can find a solution that works to maximize your pension.

➡️ Want to talk to a real person about maximizing your financial assets? Call or email me for a personalized consultation!

*SmartAsset,com, "Average Retirement Savings: How Do You Compare?", accessd 10/4/23