The Self Funded Pension

The American Express Company established the first private pension plan in the United States. Prior to the 1870s private-sector plans did not exist, primarily because most companies were small family-run enterprises.  From there governments, unions and private companies decided that in order to attract the best workers and employees they had to give them a vested reason to work for them.   Fast forward 50 years to present time and now, Social Security, which is really the last pension standing, may not be around in 30 years.

As more Americans are living longer, there could be scary times ahead for some us that are unable to save….How will we live?  What will we get by on?

Make no mistake about it, an Annuity is NOT a pension.  However, if we look at the definition of the word, there are some similarities.  You can’t outlive it.  It comes every year.  It may even have survivor benefits…

Annuities: 1) a fixed sum of money paid to someone each year, typically for the rest of their life 2) a form of insurance or investment entitling the investor to a series of annual sums.