How to set up your own Personal Pension
The Annuity Man
One of the first pension plans on record dates back to the Roman times when the dutiful Roman soldiers and their families were given a lifetime income stream for their sacrifices to the empire. Those guaranteed payments were called "annua's," which is the origin for the word "annuity." The word "annua" means payment in Latin. The word "annuitization" means to create payments.
That first Roman annuity design is eerily similar to a Single Premium Immediate Annuity (SPIA) that you can buy today. No annual fees. No moving parts. It's a straight transfer of risk that can be structured to guarantee a lifetime income stream. The payment is a combination of return of principal plus interest, and the payment guaranteed is primarily based on your life expectancy (life expectancies if joint) at the time you start the income.
The older you are, the higher the income payment amount. Just like your Social Security payments. Interest rates play a secondary role in the payment pricing.
Less than 10 percent of all private companies in the US offer a pension to their retiring employees, so it is vital to know how to set up your own personal pension plan. In addition to your Social Security payment guarantees, annuity transfer of risk strategies are the only product type available that provides an income stream you can never outlive.
Contact Stan The Annuity Man if you want to see SPIA quotes for your specific situation, or any other annuity type quote as well. You can also view a live feed of the best MYGA fixed rates for your specific state of residence.