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| Pension Planning |
Two reasons why Retirees are using the ‘Reversionary Annuity’ in their Pension Planning 1. For the Retiree: Cost of the Survivor Income is less, saving them money 2. For the Survivor: More net after tax income, because of favorable tax treatment Pension Plans require Retirees to make a difficult decision between two plan options. Option #1: Select the maximum Retiree pension benefit, but without a Survivor Benefit, or Option #2: Select a reduced Retiree pension benefit, with a Survivor Benefit
Most Retirees opt for # 2, but depending upon what happens in the future, either choice could cost the Retiree or their Survivor thousands of dollars. · If Retiree selects (#1) the Maximum benefit (Single Life) and dies first, the Survivor suffers the lost of a potential lifetime of income! · If Retiree selects (#2) the reduced income with a Survivor Benefit (J&S Option) and the Survivor dies first, the Retiree has paid for a benefit that can never be realized. LOOK AT AN EXAMPLE Retiree, female age 62, Spouse male age 63 Pension Benefit 1. Retiree’s Maximum Benefit (Single Life) $ 2,244/mo. 2. Reduced Pension (J&S Benefit) $ 1,838/mo. Reduction in benefit (Cost of Survivor Benefit) $ 406/mo.
(RA) AS AN ALTERNATIVE SURVIVOR INCOME SOURCE 1. If Retiree opts to use the pension cost $406/mo. as (RA) premium, it would purchase a Survivor Benefit of $5,918/mo. or 222% more income than the J&S Pension benefit. 2.. If Retiree opts to use the pension cost $406/mo. as (RA) 10-pay premium, it would purchase a Survivor Benefit of $3,380/mo. or 83.9% more income than the Pension J&S benefit. Because the (RA) policy is fully paid up in 10 years, (no more premium) the Retiree saves $406/mo. or $4,872 annually every year thereafter.
WHAT ABOUT YOU… Shouldn’t you find out what the 'Reversionary Annuity’ will do for you? · For a Personalized Proposal just ‘CLICK’ on the [Request a Proposal] Link below, then in comment section, indicate your answers to the following question: 1. Your maximum benefit (Single Life) $____________/mo. 2. The Retiree’s Reduction (J&S Benefit) $____________/mo. 3. The Survivor’s J&S Benefit amount $____________/mo.
IMPORTANT INFORMATION · This presentation is not a contract and descriptions of policy and rider information are only partial. You should refer to the policy and riders for complete terms and conditions. You should review specific information regarding your pension provisions and benefits. · IRS Circular 230 Notice: Any federal income tax information contained in this document was not intended or written to be used and cannot be used by any taxpayer, for the purpose of avoiding IRS Code penalties that may be imposed on the taxpayer. Such information was provided to support the promotion or marketing of the transaction(s) or matter(s) addressed by such information. Taxpayer should seek advice based on their particular circumstance from an independent tax advisor. |
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