Comparing a Traditional Pension to an Enhanced Pension

I? recently spoke to a few former NFL buddies about pensions. This got me thinking about how other industries with pensions work, and how hard it is these days for people to secure a pension at all.

Over the course of the conversation, I realized our Enhanced Pension option is so much more relevant than I originally thought when we first rolled it out for a specific group (small business owners). Now, I see it’s something a whole lot of people can benefit from.

Understanding the Traditional Pension

A typical pension system is designed to provide retirees with financial security.. It is a defined benefit plan based on a formula that factors in an employee's years of service and average salary during their career.?

Pensions used to be widely accessible but now only a few professions even offer them. Plus, if you do have a profession that offers a pension they often come with limitations and considerations to be aware of.?

Introducing the Enhanced Pension

The Enhanced Pension is an innovative retirement plan solution specifically tailored for business owners (of all sizes!), shareholders, partners, and employees in high-income professions.

It offers tax-efficient strategies to provide more retirement income compared to traditional pension plans.? Let’s look at some the key comparisons:

Flexibility and Control

The traditional pension provides a predetermined monthly benefit based on the employee’s service and earnings history.

In contrast, the Enhanced Pension allows individuals to take advantage of tax efficiencies on the front end while receiving tax-free income on the back end. It offers total control over contributions, investments, and retirement income distribution.

Customization and Tailored Solutions

The traditional pension is a standardized plan and the employee has no control or option to customize it whatsoever.

On the other hand, the Enhanced Pension offers 100% customized solutions to meet the unique financial needs and goals of individuals. Through proprietary modeling tools, individuals can visualize and plan their retirement income based on their specific savings figures and retirement objectives.

Tax Efficiency

While a traditional pension may be subject to taxation upon receipt, the Enhanced Pension offers significant tax advantages. By partnering with a lender to pay taxes upfront, the Enhanced Pension leverages the interest earned on the entire plan's value, measurably increasing the nest egg to enhance their retirement income.

Conclusion?

When it comes to planning for retirement, a pension really is the gold standard. If you thought a pension was out of reach for yourself or your clients, think again.

If you have any questions please don’t hesitate to reach out: [email protected] or call 773-318-9608.