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  • Kiplinger

    How to Create Your Own Pension

    by Sandra Block, Senior Editor, Kiplinger's Personal Finance Aug 30, 2018 4 minutes

    Guarantee Income

    Those who don't have a traditional pension -- and that includes most of us -- are frequently envious of those who do. What could be better than a guaranteed paycheck that lasts as long as you live and is unaffected by the vicissitudes of the stock market?

    There's another way: Create your own pension with an immediate annuity. Unlike the complex (and usually high-cost) indexed annuities that are sold at free lunches and dinners, immediate annuities (sometimes known as single premium immediate annuities, or SPIAs) are straightforward: You give an insurance company a lump sum and, in return, receive a monthly check, usually for life.

    A lot of policymakers and retirement experts believe annuities could go a long way

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