When $273,000 Equals $1 Million

It is easy to assume that guaranteed lifetime income requires a large portfolio. The comparison below shows a hypothetical example where a $273,000 deposit into a Pension Strategy, using a 7% roll-up rate over a 10 year deferral period, produces the same $40,000 in annual income as a $1 million portfolio using a 4% withdrawal rate at age 70. Same income target, two very different funding requirements.

These numbers are hypothetical and meant to illustrate how a benefit base and payout rate combine to produce guaranteed income, not a projection tied to any specific product. Actual roll-up rates, payout rates, and benefit base calculations vary by insurance company, product, age, and gender, and current rates are not guaranteed to be available in the future. Guarantees are backed solely by the financial strength and claims paying ability of the issuing insurance company.