If you want to get an education on any type of pension, we recommend visiting the Stan Haithcock website at Stantheannuityman.com. You can request a free pension brochure for all types, including the advantages and disadvantages of each type. The brochure is not written in terms of sales pitch for using his services. Whether you use his services or not, they are worth it to you.
You can listen to his podcasts for free to learn about the basics of pensions. His podcasts are highly educational and presented in a way that makes you understand whether you should consider a pension. He points out that you should only purchase an pension if you understand the contractual guarantees you are getting from the pension you consider.
If you are not at age 50, you should not consider a pension. If you reach 80, you should not consider it.
Haithcock discusses the pros and cons of the various asset sources that can be used to fund your pension. For example, he will review the pros and cons of whether you should consider a pension within a traditional IRA or 401(k) structure.
You need to establish specific goals before considering purchasing an pension. The goal determines which type of pension to consider.
Single Premium Instant Pension
If you want a specific income stream now, you should consider a single premium instant pension (SPIA). With this type of pension, you will pay a suspension upfront and receive a specific income stream for the rest of your life soon. You can buy it for both you and your spouse. A trusted pension sales representative will identify the trusted insurance company that will provide the best returns.
Deferred pension
You don’t currently need income, but at some point in the future, consider a deferred pension. This requires an initial suspension, but pension income will begin later. You’re not earning any immediate income, so your income is much higher than SPIA. You can request a variety of starting points, including a qualifying long-term pension (QLAC) starting at age 72.
Fixed fee pension
Fixed-price pensions, also known as multi-year guaranteed pensions, are similar to deposit certificates. The time limit can range from 1 to 10 years. You could potentially earn more revenue from a 3- or 5-year fixed-fee pension than a CD with the same maturity. One of the advantages of fixed-tax pensions is that income taxes are not paid until maturity, as opposed to CDs that are liable for tax payments at the end of each year. There is no higher cost than buying a CD or buying a fixed interest pension.
Long-term care pension
Long-term care (LTC) pensions have a fixed pension structure with a range of long-term care or confinement care. Some are fixed pensions, some are fixed indexed pensions, with either built-in merits of care or attached to the rider.
More options
Other brochures cover features such as income riders. In general, income riders can add to several pension contracts that can be used in the future to pay their lifetime income.
Conclusion: If you reach age 60, you will find that you have a pension that will help you achieve your financial goals. Apart from variable annuities, you can find that you can purchase your pension in a cost-effective way, avoiding high fees. Once you have determined which type of pension makes sense for your goals, you can compare the costs of a reputable, stable insurance company between companies with a good valuation.
All trusted companies selling pension products will identify the insurance companies that offer you the most cost-effective pension. You should be able to use the services to compare returns from various trusted insurance companies.
Elliot Raphaelson welcomes your questions and comments at rapelliot@gmail.com.
Original issue: July 25th, 2025, 4:48pm EDT
