Create your own personal pension

Retirement planning has certainly changed a lot over the years, hasn’t it? First came pensions, or defined benefit plans, with their guaranteed income for life. After that it was 401(k)s. These plans focused on growing wealth from the stock and bond markets. Your pension and 401(k) were meant to work together but now pensions are disappearing and many people are left with just their 401(k) plan.

Your 401(k) is an important piece of your retirement savings but it was never intended to be your sole retirement solution. Instead, your 401(k) was meant to provide additional retirement savings that worked with your pension, savings and other income sources to paint a full retirement picture. But now for many people the pensions are gone and while you have other savings avenues – what can you do to replace this lost retirement income?

One option could be a deferred income annuity (DIA). A DIA allows you to set up a guaranteed income stream beginning later in your life. With a DIA it’s important to remember that the guaranteed income is based on the strength and claims paying ability of your financial institution so it’s important to choose the right partner. DIA’s are traditionally funded with a lump sum payment up front and the contract promises to pay you a lifetime income stream starting with a date of your choice.

For example, let’s say you purchased a DIA with a $50,000 lump sum. That money will then be held by your financial institution for a defined period, according to the contract, where it will grow with interest. After a specified amount of time has passed, you can start receiving payments. This guaranteed stream of income can then be used to supplement additional retirement savings and help you fill a void in your retirement portfolio.

A DIA is one example of the many options that are available when it comes to retirement strategies and that’s good news for any investor seeking retirement income. With traditional pensions disappearing from the landscape, there are still plenty of options that let you design personal solutions for your own retirement. The key is knowing your options and working with a financial professional who can help guide you toward a stable retirement, that way you’ll be ready for any changes that happen in your retirement planning until it’s finally time for you to enjoy the fruits of all that hard work and smart saving.

- Advertisement -

Brandpointcontent.com

More Stories

Carib Cement

Carib Cement explores durable concrete roads for Jamaica’s rural areas

Carib Cement Company is evaluating the implementation of its Unicapa Concrete Solution in Jamaica as part of a pilot programme aimed at improving rural...
eGov Technology Showcase

Jamaica advances digital transformation at eGov Technology Showcase

The future of Jamaica’s digital transformation took center stage at yesterday’s eGov Jamaica Limited GOJ Digital Government Technology Showcase at the Jamaica Pegasus. The event,...
imf

IMF highlights St. Lucia’s strong economic performance

The International Monetary Fund (IMF) has commended St. Lucia’s economic recovery, citing strong growth in tourism, construction, and manufacturing. In its 2024 Article IV consultation,...
Jamaican gov’t slashes import bond for new-car dealers

Jamaican gov’t slashes import bond for new-car dealers

In a move aimed at stimulating economic growth and easing financial strain on auto dealers, the Jamaican government has slashed the bond on duties...
Jamaica Finance Minister Fayval Williams

Jamaica’s debt-to-GDP ratio hits lowest level in 30 years

Jamaica is on track to achieve its lowest debt-to-GDP ratio in nearly 30 years, a key milestone in the country’s financial stability and economic...
CARICOM Caribbean general elections

CARICOM welcomes Canada’s $24.1M funding for regional development

The Caribbean Community (CARICOM) has welcomed Canada’s commitment of CAD$24.1 million (US$16.6 million) to support social action, women's empowerment, human rights, and security across...
Sophronia McKenzie

Sophronia McKenzie: Revolutionizing the Caribbean food industry with visuEats

On International Women’s Day, we celebrate the achievements of women who are breaking barriers in their industries—women like Sophronia McKenzie, the Founder and CEO...
Suriname Joins World Bank's International Development Association as Newest Member

World Bank to invest US$320 million to support Haiti

The World Bank Group has approved a new strategic partnership with Haiti, aimed at helping the country recover economically and socially over the next...
World Bank says global economy not growing fast enough to alleviate poverty

Caribbean nations get $131.8M from World Bank for energy project

The World Bank has approved a $131.87 million project aimed at advancing energy efficiency and expanding renewable energy use in Grenada, Guyana, and Saint...
Jamaica BP sector

Private sector dominates Jamaica’s BPO space, driving economic growth

Jamaica’s Business Process Outsourcing (BPO) sector has undergone a remarkable transformation, evolving from a modest operation in the Montego Bay Free Zone to a...

Latest Articles

Skip to content