Different Pensions for Different Needs
A unique pension can be designed to suit your individual needs.

Level pension for life for one person
This form of pension pays the highest possible cash flow per month since it is based on one person’s life and does not leave a survivor pension (for a spouse) nor does it have a feature permitting an inheritance amount. It simply maximizes the amount of pension you get. This type of pension is good for a single person who also has no estate goals.

Pension for life that increases annually with an inflation factor
Inflation is the rising cost of living that occurs over time. This type of pension will increase your payments each year for an inflation factor so that your purchasing power keeps pace with the cost of living. For someone planning to live off a pension for twenty years or more, we feel this inflation indexing of payments is essential.

Joint and last to die pension
This is the most common type of pension for couples. This pension ensures that pension payments continue until both spouses are deceased. When the first spouse dies, the surviving spouse will continue to get the same pension, or a smaller pension, depending on your preferences.

Term pension
For an individual who needs a pension for only a fixed period of time, this term pension makes monthly payments to you for a set number of years. Perhaps you want some supplemental income through the early part of your retirement (ages 60 to 70) to have extra money for travel and leisure. A term pension could be set up to provide a separate cash flow payment each month to fund this stage of life.

Pension with potential for an inheritance
So often with traditional pensions from companies and the government, when you die, the pension stops and your heirs get nothing. Not so, with this kind of pension. If you die prematurely, you can specify how many years (from zero to approximately twenty) that you want to see your heirs (often children) be entitled to some payment from your pension. This feature alleviates the fear that when you die your kids get nothing – under this powerful option you can feel more confident that you or your estate will get full value from this pension.

Special Needs Children
Often parents want to ensure that their children are taken care of long after the parents are gone. Setting up a pension that provides guaranteed, monthly pension benefits to the children ensures they will always have money. And, with the pension requiring no investment management, no fees and no ongoing paperwork, it is very suitable for special needs families.

The pension will provide for a guaranteed monthly payment that can be used to pay for housing, food, schooling and other functions that your child needs. The payment cannot be changed nor accessed so the pension also offers great control over the funding until your children eventually also passes on.

Pension and life insurance combo
If your pension generates more cash flow that you will need to live off in retirement, consider purchasing a life insurance policy with some of the pension money you receive each month. Life insurance policies can be purchased for as little as $25,000, but often sizes of $250,000, $1,000,000 or larger are common. Part of your pension payment can be set up to pay the premium of the policy directly so that your personal cash flow is never interrupted. The insurance policy will provide a tax free payout of capital on your death that will fund a bigger inheritance to a surviving spouse, the children, grandchildren or a charity. Payments from life insurance on death are tax free and probate fee, providing a smoother, potentially less costly transfer of wealth to your heirs.

Lastly, if you do have an estate goal to leave money to your heirs, the purchase of a life insurance policy is a simple way to guarantee your goal is achieved, leaving your retirement savings for you to spend over your lifetime. Combining a life insurance policy and a pension is more clear cut way to structure your estate goals while minimizing income taxes along the way.


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