If you’re approaching retirement from a career in law enforcement, fire service, corrections, EMS, or another public service profession, you’ve probably heard about the Pension Shield Option™.
But what exactly is it?
Simply put, the Pension Shield Option™ is a retirement income strategy designed for eligible retirees participating in a Defined Benefit Pension system.
Its purpose is to help retirees evaluate all of their available options before making a permanent pension election.
Why Was the Pension Shield Option™ Developed?
Many first responders discover that retirement often comes down to two traditional choices:
Receive the Maximum Pension and maximize monthly retirement income.
Or…
Choose a Survivor Pension Option that permanently reduces the monthly pension so benefits can continue to a surviving spouse.
For many retirees, those appear to be the only two choices available.
The Pension Shield Option™ encourages retirees to ask one additional question:
Is there another way to accomplish my family’s financial goals?
How the Strategy Works
The Pension Shield Option™ explores whether an eligible retiree may be able to elect the Maximum Pension while using a portion of the additional monthly retirement income to create an alternative source of financial protection for a surviving spouse.
When appropriate, the strategy seeks to help retirees:
- Preserve more monthly retirement income.
- Provide financial protection for a surviving spouse.
- Maintain greater flexibility during retirement.
- Create the potential to leave a financial legacy for future generations.
Because every retirement system and every family is different, the strategy must always be evaluated individually.
Is the Pension Shield Option™ Right for Everyone?
No.
The Pension Shield Option™ is not appropriate for every retiree.
Your pension system, retirement goals, family circumstances, health, and financial objectives all play an important role in determining whether the strategy deserves consideration.
The purpose of the Pension Shield Option™ is not to recommend the same solution for everyone.
Its purpose is to ensure retirees understand all of their options before making a decision that may last the rest of their lives.
Knowledge Leads to Better Decisions
The Pension Shield Option™ is best understood after learning the fundamentals of retirement planning.
Understanding your Defined Benefit Pension, comparing the Maximum Pension with the Survivor Pension Option, and recognizing how retirement decisions can become a $300,000 Pension Decision all provide valuable context before evaluating any retirement strategy.
Talk with Retirement Nationwide
Choosing a pension election is one of the biggest financial decisions most first responders will ever make.
Before signing your retirement paperwork, take the time to understand every option available to you.
The Retirement Nationwide team specializes in helping public safety professionals understand their Defined Benefit Pension choices and determine whether the Pension Shield Option™ deserves consideration as part of their retirement planning.
Contact Retirement Nationwide today to schedule a confidential, educational consultation. You’ll gain a clearer understanding of your pension options so you can make an informed decision with confidence.