A Private Pension provides a guaranteed minimum rate of return, while also allowing for the potential to earn additional interest based on the performance of a specific stock market index, such as the S&P 500.

Private Pensions offer protection for your money. Unlike traditional retirement accounts, which are subject to market volatility and can experience significant losses, Private Pensions have a guaranteed minimum rate of return, typically 0%. This means that your money is protected, even in a down market when 401(k)'s lose significant value.

On top of Protecting your money, Private Pensions have guaranteed income similar to a Pension provided by a company. In years past, Pensions were normal. At any point an employee could look at their Pension statement and determine how much income they would receive for the rest of their life. With Pensions becoming more and more rare, and worse yet many of them underfunded, a Personal Pension is a great option to have the same benefits with none of the risk.

Individuals can move their 401(k) or IRA accounts into a Private Pension penalty-free and tax-free. This means that those who are looking to diversify their retirement portfolio or reduce their exposure to market risk can do so without incurring costly fees or taxes.

Bottom Line: A Personal Pension protects your hard-earned retirement dollars and ensures you never run out of money during retirement.