Become Your Own Pension Manager
To build your own pension, follow the playbook that corporate pension managers use.


People who approach me for advice on how to manage their retirement finances often wish out loud that they could rely on an old-fashioned pension like their parents had when they retired. These individuals knew Mom and Dad appreciated the checks that appeared in the mailbox every month without regard to what the stock market was doing or how old they were.
As many people nearing retirement age lament, traditional pensions are just about gone, having been replaced by 401(k) and other defined contribution plans. With little or no help from their HR departments at work and not able to afford a pension consultant, workers are on their own to create retirement income security. They have had to become their own pension managers.
Become a ‘Pension Manager of One’ with Income Allocation Planning
There is good news, however! That’s because there’s a way for investors to become their own pension managers. You will continue to rely on your own savings, but you will find this solution can create for you much the same feeling that your parents enjoyed: Fewer worries about the stock market, and confidence in a steady stream of income that arrives in your bank account without fail every month.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
How do you do that? I’m an actuary by training, but I started my career in life insurance product development, later moving to retirement planning and pension consulting. With this experience, I was able to develop what I call the Income Allocation planning method, which integrates annuity payments into a plan for retirement income.
The Corporate Pension Manager’s Toolkit
Using this planning method, you take the tools that traditional pension managers in large corporations have at their disposal and adapt them for your own personal use. Besides the resources of a large company, these “pension managers of many” have a number of built-in advantages:
- Corporations and governmental units create pensions for large groups of people, which creates an automatic advantage in the pooling of longevity risk. The risk is spread over these many individuals in order to make sure pensions are paid as long as retirees live, just like an insurance company does.
- Even if the stock market implodes for several years, pension fund managers don’t worry too much, because active employees have not retired yet. And the company can increase its pension funding, giving the manager plenty of time to rebuild the fund as the markets recover.
- Of course, the managers are not working alone. They have a team of actuaries who compute expected life spans and market returns. Money management companies bid for the pension fund’s business and task their professional investors with choosing products for stability and the most favorable returns.
Your Personal Pension Management Toolkit
You can design a pension for one or two yourself, if you take advantage of those same tools that a pension manager uses.
- Pooling of longevity risk. You can achieve this by integrating lifetime annuity payments from one or more highly rated annuity carriers. Annuity payments continue for the rest of your life, or the life of a spouse who survives you. These annuities provide guaranteed lifetime income that starts immediately or at a future date, and they can be purchased singly or in combination. Whether you purchase with IRA funds, personal savings or both can be driven by tax considerations.
- A portion of your savings will remain in the market, but not so much that your income dries up when the market crashes. The allocation between investments and income annuities is driven by the sources of income. If dividends represent a larger portion of your income, then you probably have a higher percentage of equities. Intensive plan management will keep your plan on track to survive the markets’ ups and downs. By plan management, we mean that at least quarterly — or as needed — your entire plan is re-evaluated. With more secure income, you may find that even with market changes, significant changes in your income may not be required.
- Professional resources. Ideally, you will find on your own or through a financial adviser a low-cost investment platform so you can pay retain more of that income you planned on. Consider platforms that provide robo-adviser services or direct indexing portfolios to keep fees as low as possible. Fees can represent a much larger portion of income than you may imagine.
Reducing worries
Corporate pension managers know how to manage the retirement plans for current and future retirees, and they have the resources to succeed. Are you ready to become your own pension manager?
Go2Income has a ready-to-implement program. I promise it will be almost as easy as handing over your money to a corporate pension manager.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Jerry Golden is the founder and CEO of Golden Retirement Advisors Inc. He specializes in helping consumers create retirement plans that provide income that cannot be outlived. Find out more at Go2income.com, where consumers can explore all types of income annuity options, anonymously and at no cost.
-
Why is My First Medicare Bill So High?
Your first Medicare bill may be higher than expected for several reasons. If your premiums aren't taken out of your Social Security benefit, the bill can be huge.
-
11 Unforgettable Road Trips to Take in Retirement
More than a travel trend, the road trip is a quintessential American tradition, with millions of us taking them each year. Here's a guide to helping you choose your next adventure.
-
I'm a Financial Professional: Here Are Four Ways You Can Use Debt to Build Wealth
Using debt strategically, such as for homeownership, education and more, can lead to greater financial stability and growth.
-
Five Key Wake-Up Calls for Ambitious Business Owners, From a Biz Specialist
Your personal financial plan needs to include a formal exit strategy for your business, or you could be in trouble.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for Retirees
The One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRA
Millions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest Rates
With potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This Year
Set a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
The Seven-Day Financial Reset: A Simple Plan to Get Control of Your Money, From an Expert
Sometimes, getting unstuck requires a reset. These practical steps can help you tackle your money issues and feel less overwhelmed by it all.