This week, DPL Internal Consultants Blake Reitnauer and Tyler Caummisar talk about the differences between traditional pensions and annuities, highlighting the flexibility and advantages of modern annuities. Their conversation focuses on joint income, death benefits, and how to shift pensions to annuities. Learn more at

Traditional retirement plans, often called pensions, were once the primary source of financial security for retirees. However, in today’s economic environment, individuals are actively shaping their retirement futures, and modern annuities offer a compelling solution. A well-chosen annuity provides individuals with a secure and comfortable retirement, enjoying the benefits of flexibility, growth potential, and a guaranteed income stream.

In this episode, DPL Internal Consultants Blake Reitnauer and Tyler Caummisar talk about the differences between traditional pensions and annuities, highlighting the flexibility and advantages of modern annuities. Their conversation focuses on joint income, death benefits, and how to shift pensions to annuities.

Key Takeaways
00:00 – Intro
01:24 – The overall trend for defined benefit plans.
03:40 – The key difference between a traditional pension and an annuity.
07:02 – The difference between pensions for joint income and modern annuities.
10:45 – The difference between annuities and pensions in terms of death benefits.
14:50 – How DPL replaces pensions with modern annuities…(read more)

LEARN MORE ABOUT: Retirement Annuities

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In today’s world, retirement planning has become increasingly complex with a wide array of options available to individuals looking to secure their financial future. Two common options that people often consider are modern annuities and traditional pensions. While both are financial products designed to provide retirees with a steady income stream, there are key differences between the two that should be taken into consideration.

Modern annuities are essentially insurance products that provide individuals with a guaranteed income stream for a certain period of time, usually for the rest of their lives. They can be purchased from insurance companies and come in various forms, such as fixed, variable, or indexed annuities. An annuity is typically funded with a lump-sum payment or through a series of contributions made over time. One of the main advantages of annuities is that they offer flexibility in terms of how the income is paid out and when payments begin.

On the other hand, traditional pensions are retirement plans typically offered by employers to employees as part of their overall benefits package. With a pension, the employer contributes to a pension fund on behalf of the employee during their working years. Upon retirement, the employee receives a predetermined amount of income based on their salary and years of service. Pensions provide retirees with a sense of security, knowing that they will receive a steady income for the rest of their lives.

One of the main differences between modern annuities and pensions is how the income is generated. With an annuity, the individual purchases the product from an insurance company and the income is generated from the investments made by the insurance company. In contrast, pensions are funded by the employer and the income is generated from the pension fund set up by the employer.

Another key difference is the level of risk involved. With an annuity, the individual bears the investment risk, meaning that the income received may fluctuate based on the performance of the underlying investments. On the other hand, pensions are typically considered low-risk because they are backed by the employer and are guaranteed to provide a fixed income stream.

Additionally, there are differences in terms of portability and flexibility. Annuities are usually portable and can be transferred if the individual changes jobs or moves to a different location. Pensions, on the other hand, are typically not portable and may be lost if the individual leaves their employer before reaching retirement age.

In conclusion, both modern annuities and pensions offer retirees a guaranteed income stream for their retirement years. However, there are key differences in terms of how they are funded, the level of risk involved, and their portability and flexibility. It is important for individuals to carefully consider these factors and consult with a financial advisor to determine which option is best suited for their individual needs and goals.