At Retirement Nationwide, we specialize in helping retirees—especially public safety professionals such as police officers, firefighters, and first responders—unlock the full potential of their hard-earned defined benefit pensions. The Pension Shield Option™ is a proven strategy that allows you to select the highest possible monthly pension payout while providing superior, flexible protection for your spouse and heirs.
Why Traditional Survivor Options Fall Short
Most pension plans force a difficult choice at retirement:
- Elect the maximum single-life benefit and risk leaving your spouse with little or nothing, or
- Accept a permanent reduction in your monthly income (often 10–50% or more) to provide a survivor benefit.
This "survivor dilemma" can cost hundreds of thousands of dollars over a lifetime in reduced income, with limited flexibility, no cash value, and potential loss of cost-of-living adjustments (COLA). If both spouses pass early, the pension fund retains the remaining value—leaving no legacy for heirs.
Solves The Survivor Option Dilemma
To protect your spouse, you must accept a permanent reduction in your pension payment for life.
Protect Your Largest Asset
Unlock higher monthly pension payments with added protection for your family
How the Pension Shield Option™ Works
- Elect the maximum pension benefit available under your plan.
- Use a portion of the increased monthly income to fund a tailored private life insurance policy (the "Shield").
- Design the policy to deliver a tax-free death benefit that replaces or exceeds the traditional survivor option—payable directly to your spouse or beneficiaries.
This approach often delivers:
- Higher net retirement income during your lifetime.
- Greater flexibility and control—including cash value access, policy loans, and the ability to adjust as life circumstances change.
- Enhanced legacy potential—tax-free proceeds to heirs, even if both you and your spouse pass away.
- Protection against key risks, such as premature death, long-term care needs, or changes in health.
The strategy draws from decades of experience in pension optimization and is detailed in the book The Pension Shield Option™: Protecting Your Pension, Your Spouse, and Your Legacy by George McReynolds, CFP®, and Jim Lusk, CFP®, CLU®, ChFC®, CLF®, M.Ed.
Key Benefits of the Pension Shield Option™
- Maximize monthly income without permanent reductions.
- Superior spousal protection with tax-free, customizable benefits.
- Build and preserve wealth for heirs through cash value and death benefits.
- Integrate with broader retirement planning, including DROP accounts, Roth strategies, and long-term care considerations.
- Peace of mind—knowing your pension works harder for your family while you enjoy retirement.
Who Benefits Most?
The Pension Shield Option™ is particularly powerful for:
- Public safety retirees with strong defined benefit pensions.
- Individuals in good health seeking to leverage insurability.
- Couples wanting to avoid "paying premiums into a black hole" via reduced pension options.
- Those prioritizing legacy and flexibility over rigid plan defaults.
Important Considerations
This strategy requires careful timing: secure approval for your Private Protection Plan before finalizing your pension election. Work with an experienced advisor to run personalized illustrations, compare scenarios, and ensure the plan aligns with your health, family needs, and overall financial picture. Results vary based on age, health, pension formula, and plan design.
Ready to Explore Your Options?
Don't leave one of your largest assets to chance. Our team at Retirement Nationwide provides expert guidance on pension maximization, survivor benefit alternatives, and defensive retirement strategies.
Call for a confidential consultation today:
509.850.1150
We’ll walk you through the numbers, answer your questions, and help design a solution tailored to your situation.
Defensive Retirement Strategies for People Who Don’t Have Time to Worry.
