RETIREMENT PENSION PROJECTIONS
American Pension and Retirement Services help educators, public employees, and their families with their Pension Planning and Pension Education.
Retire at 100% of your last years income. Not 60% of your last year's income.
American Pension and Retirement Services provide all pension members and their families with a FREE state pension report. Get a Pension Report and an APRS pension specialist will email you to educate you on your pension benefits.
FREE PENSION FOR ALL PENSION MEMBERS
Since 2000, American Pension and Retirement Services have been educating all certified and uncertified pension members in all 50 states.
APRS provides free projections and workshops to all pension members nationwide.
Click below to receive a detailed pension report and a full educational explanation of your pension benefits.
STATE PENSIONS EXPLINATION
A pension is a commitment on the part of an employer to provide retirement benefits. The employee (member) defers a portion of his or her salary that the employer holds in trust. That money grows over time and is paid to the member after he or she retires in the form of monthly payments payable for life.
A traditional pension is a "defined benefit" (DB) pension. Under a DB plan, the amount of the retirement benefit is based upon a formula that includes the member's final salary and years of service (also known as "service credit").
The amount of the pension is not based on the value of the member's account. In addition, DB pensions are payable for life; the member can never outlive his or her pension.
A different type of retirement plan is a "defined contribution" (DC) plan, such as a 401(k) plan in the private sector. Under a DC plan, the future retirement benefit is based upon how much the participant contributed and the earnings made on those contributions.
PENSION MEMBERS RECEIVE A AVERAGE RETIREMENT PENSION. A PENSION BENEFIT IS ONLY A PIECE OF THE RETIREMENT PIE.
Many teachers get paid average salaries, making Pensions an essential driver of educator recruitment and retention. Pension is not 100% of the retirement pie. APRS takes the time to educate you on how much of the pie does the pension provides. Most importantly, how much the pension does NOT provide.
Differences Between Defined Benefit
and
Defined Contribution:
Two key differences exist between a traditional defined benefit (DB) pension and a defined contribution (DC) plan:
Investment Risk:
Under a DB plan, the employer assumes the investment risk. The amount an employer contributes to a DB plan depends on a number of factors, its members; ages, years of service, salaries, etc. as well as the return on investments. If investment returns are low, the employer's contribution increases. Conversely, if investment returns are high, the employer's contribution decreases.
The amount of the member's contribution is often fixed by law. Returns on investments do not affect the amount of the member's contribution. Under a DC plan, the participant assumes the investment risk. Within certain guidelines, the participant has control over how much he or she contributes to the plan, as well as how those contributions are invested. However, poor investment decisions or negative investment returns due to market performance can result in lower amounts available at retirement.
Longevity Risk:
Under a DB plan, the member can never outlive his or her pension. Once a member "vests" (earns enough service to become eligible for a pension) that pension is guaranteed and is payable for the life of the member. The amount of the pension is based upon a formula, not on the value of the member's account. Under a DC plan, the amount of the retirement benefit is unknown until the participant retires. Also, it is possible that the participant could outlive the value of his or her account.
THINK OF APRS AS YOUR “PENSION EDUCATORS.”
Regardless of which state your Pension is with, we are here to help explain how your Pension Plan works.
If you are a Public Pension Member in or nearing retirement, you must understand how your Pensions and Social Security payouts work.
You’ve worked hard for many years, and now you must sustain yourself in retirement!
Thankfully Pensions and Social Security exist, but they can be confusing and challenging to understand. That’s where APRS helps Educators and their families.
SCHEDULE A PENSION EDUCATION WORKSHOP
EDUCATOR PENSION FAQS
Below are commonly asked questions that we can help you answer:
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HOW DO I DETERMINE THE BEST COMBINATION OF POLICY BENEFITS?Each person has a unique reason for wanting to acquire Long Term Care coverage. In order to find the policy that best fits your needs, first, determine why you would like a policy to begin with. Some people would like the peace of mind that the maximum amount of Long Term Care coverage provides, while others are looking for coverage that won’t require too high of a budget. In either case, age, income, asset base, and tolerance for financial risk will need to be considered in order to determine what will work best for you. Our highly knowledgeable Long Term Care professionals will be able to provide technical advice and recommendations based on your needs.
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CAN I STILL CHANGE MY BENEFITS AFTER MY POLICY HAS BEEN ISSUED?Absolutely. If you’re looking to expand your coverage, you will need to be approved again which will require another process of medical underwriting. Once this is completed, your new information will be used to determine your updated premium. If you choose to reduce your benefits, you will not need to undergo medical underwriting again.
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HOW ARE PREMIUMS CALCULATED?When calculating a premium many factors are considered. These include your age and health at the time of application, and your benefit choices. Benefit choices include how much your benefit amount is, your benefit period, and your elimination period. Medical underwriting is the process in which your application is examined, then your premium is determined.
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DOES LONG TERM CARE INSURANCE HAVE TAX ADVANTAGES?Yes! Any policies that are tax-qualified do have some tax advantages. If you itemize and your total expenses are over 7.5% of your adjusted gross income. In addition, benefit payments are insusceptible to federal taxation and even state taxation in some states. Finally, if your employer provides contributions for LTC premiums they may be 100% tax deductible.
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WHAT IF I HAVE PLENTY OF ASSETS TO CARRY ME THROUGH MY RETIREMENTFinancial planning has been crucial for you to achieve this goal. Since Long Term Care can be extremely expensive (between $60,000 and $100,000 every year) using some of the interests acquired from your assets for Long Term Care coverage could be a great way to continue planning for your future! The price of Long Term Care continues to rise but National Educational Services is here to help you find the policy that fits your needs.