Corporate Pensions Are Heading for Extinction

Corporate Pensions Are Heading for Extinction. Is Your Retirement Secure?

Today yet another announcement came out about companies pulling the plug on guaranteed benefit pension plans. A guaranteed benefit plan provides regular retirement paycheck no matter how long the person lives. Fewer and fewer companies are directly providing guaranteed benefit plans. 

“Nearly two-thirds of pension funds are considering dropping guaranteed benefits to new workers within the next five years, according to a human resources consulting firm that studied the matter…The number of pension plans offering defined benefits – which means the payouts are guaranteed – plummeted by about 73% from 1986 to 2016, according to the Department of Labor’s Employee Benefits Security Administration.” (USA Today)

This isn’t just a recent trend in the last few months, but it is a trend that is increasing. People are having to take control of their own retirement planning. 

“Some experts expect that most private-sector plans will be frozen in the next few years and eventually terminated (Aglira 2006; Gebhardtsbauer 2006; McKinsey & Company 2007). Under the typical DB plan freeze, current participants will receive retirement benefits based on their accruals up to the date of the freeze, but will not accumulate any additional benefits; new employees will not be covered.” (Social Security Administration)

How do retirement plans in the USA compare internationally?

The 2019 Melbourne Mercer Global Pension Index ranks the USA as #16 in the world with a grade of C+ for retirement planning.The index is based on three sub-indexes; adequacy, sustainability, and integrity. (Read the 2019 report summary.)

How does your retirement plan stack up on the three indexes? 

While the future of retirement pensions being provided for you by an employer is questionable, the good news is you can create your own pension with guaranteed income for life, guaranteed no loss of principal, and guaranteed growth.    

Did you know that the Knights of Columbus retirement plans are completely directed by you, with the backing of a company with the highest ranking by AM Best in North America? A company that has existed since 1882? A company in which the mission is always on putting members first, not the bottom line? 

How do the Knights of Columbus Personal Retirement Plans Stack Up?

No one does security better than the Knights of Columbus 

Benefits are guaranteed 

No higher ranking in North America for AM Best 

Guaranteed benefits plans available

Knights have existed since 1882 

Conservative investment strategies yield guarantee no loss of principal and guaranteed growth to policy owners

Mission is always on putting the members first, not the bottom line or outside stockholders

Non-profit fraternal benefits company, not a for-profit company 

Your personal advisor with the Abbate Agency can help you evaluate your current retirement plan and make sure you have the pension and retirement you’ve worked hard to enjoy. Contact us today. 

Take the first step toward achieving your financial goals.

Learn More: Retirement Income Strategies

Read about how you can set up income strategies that will have a long-term effect for your retirement years.