Pension Maximization

​The Pension Maximization strategy utilizes life insurance to resolve some of the possible conflicts that arise from a defined benefit pension plan distribution. If you are married and have a company pension or defined benefit plan, upon retirement you are often faced with making a difficult decision regarding your desired payout—either a Single Life option or a Joint and Survivorship option.
 
• The Life Only benefit is generally larger, often times one-third or more than the Joint and Survivor benefit.
 
• The choice is between a larger lifetime benefit with no survivor benefit versus a reduced lifetime benefit but a continuing income for the surviving spouse.
 
• The Joint and Survivor option is only useful if the spouse outlives the retiree.
 
• Regardless of which option is chosen, the payments end after the death of the retiree or the death of their spouse. There is nothing left for heirs.
 
This is where the Pension Maximization Strategy comes in and may increase the retirement income available to a client and their spouse from a defined benefit pension plan. The retiree elects to take the larger Life Only benefit and purchases life insurance to replace the survivor benefits that they have forgone. 
 
But what if you the retiree outlive your spouse? 
What if you both live a long life and die at about the same time? 
 
These are possible scenarios where the Single Life option would seem to be the better decision. It’s impossible to predict what is going to happen, so it seems impossible to make the right choice. Contact us today to see if this retirement planning strategy is suitable for you.
(877) 288-PLAN (7526)
60 E 42nd St.
New York, NY 10165​
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