Cash balance pension plans provide the option of a lifetime annuity

Annuities differ from life insurance policies in a few key ways, such as when they're paid out and who they benefit

Annuities are intended to benefit the plan owner, and benefits are paid out during the owner's life. The person who buys life insurance rarely sees those benefits—they're intended instead for heirs and dependents.

US pension plan adoption has declined from 1975 to 2021

Pension plans are a form of guaranteed retirement plan for long-time workers, and they were a major part of industries in the mid-20th century. With the rise of the 401(k) and similar tax-advantaged, defined-contribution accounts, these so-called defined-benefit plans have declined in use by employers. Compare US adoption of both kinds in this table.

401(k) plans and pensions differ in who has control over the investments

With pension plans, a company contributes to an investment fund from which it distributes regular payments to a retired worker until their death. A 401(k) gives the worker control over contributions in a tax-advantaged account.

Those over the age of 55 can buy an annuity with their pension savings

Annuity rates have risen in recent years, making them a more popular financial product, especially as people live longer. But buying an annuity isn’t a spur-of-the-moment decision.

Annuities come in different types, such as immediate annuities and deferred annuities

Immediate annuities have no accumulation phase and go straight to the annuitization phase, whereas deferred annuities are set up to begin paying out at an agreed-upon date in the future. Annuities can also differ in how they accumulate value (fixed and variable annuities).

Investments into an annuity are typically locked up during the accumulation period

For one year, most annuitants won’t be able to withdraw any funds. After that, most contracts allow them to take out up to 10% of their accumulated total annually before fees—called surrender charges—are applied to their withdrawals.

Annuity sales have climbed, topping $430B in 2024, as retirees look to pad their income

Retirees are seeking guaranteed income that will last for as long as they live, weather market downturns, and preserve wealth.

Permanent life insurance offers access to a cash value account, which is like a savings account

It's a huge perk of purchasing permanent life insurance. Policyholders often use these accounts as another investment tool. In this podcast episode, NerdWallet experts break down how you can use your cash value account to invest, plus the pros and cons of this tactic.

Pensions often must ‘vest’ for an employee to be eligible for them

This means that often, an employee won’t be eligible to receive a full pension benefit from an employer until they have worked at the job for a certain number of years. Specifically, these vesting schedules determine when one owns their employer’s pension contributions. The number of years varies significantly by employer.

An annuity income calculator

This interactive calculator lets users estimate how much money they can expect in their annuity payouts, depending on factors such as how much they invest and how long they expect to be paid. It also shows how the principal will deplete over time.

When a pension holder dies, payments are sometimes passed on to a relative

Those relatives are often the pension holder’s surviving spouses or dependents. This article offers tips from a financial expert on how to make sure your spouse is taken care of during retirement, including navigating a pension’s ultimate destination.

Who has retirement accounts?

Though every worker wants to retire, only some have retirement accounts. Data from the Census Bureau shows those who currently own such accounts are disproportionately white and Asian men in the Baby Boomer generation, suggesting access to these crucial retirement plans is not equal. Dive into the numbers and get a sense of who has retirement accounts here.

Expert says 90% of lottery winners take a lump sum vs. an annuity

However, a lawyer specializing in lotteries told CNBC that lottery winners should opt for an annuity instead. Lump sums are immediately slashed in half, and while both options are taxed, there are ways to minimize the taxes owed on annuity payouts.

Health savings accounts are designed to alleviate upfront costs for high-deductible health plans

High-deductible insurance plans often have low monthly premiums, but require policyholders to meet a set spending threshold on medical expenses each year before the insurance kicks in. Health savings accounts give high-deductible plan holders a tax-free savings account to balance the high upfront costs that come with an HDHP.

Certificates of deposit are investment vehicles that earn interest on a fixed sum of money over a set term

CDs come in varying term lengths, from three- or six-month commitments to decadelong terms. Typically, the longer the term, the higher the interest rate.

What is the 240 paychecks retirement rule?

Many people think about the large sum of money they'll require to retire comfortably. It can be intimidating. The 240 retirement method breaks that thinking down into paychecks. Specifically, the framework argues that the average retiree will need 240 paychecks to retire. Learn more here.

529 plan advantages include state-specific tax exemptions and more

For National 529 Day, celebrated on May 29, an expert explained the basics of 529 accounts. Outside of forced education savings, advantages include flexibility around beneficiaries (they can be changed easily), how unused funds can be rolled into a Roth IRA, and state-specific tax exemptions.

Employers get to keep any FSA funds not used by the annual deadline

Flexible spending arrangements have use it or lose it deadlines defined in the plan. Employers that offer FSAs get to keep any unused funds, but that money has to go towards administering the FSA program. Remaining FSA funds can also be pooled and divided evenly amongst a company's FSA participants, but very few companies actually do this.

The average gig worker likely doesn’t have an employer-sponsored retirement plan

But just like full-time 9 to 5 office workers, gig workers can still save for retirement. An article outlines strategies for gig workers seeking to save for retirement, including different ways to think about what the money from each “gig” should go toward.

Many countries, like Iceland and Norway, offer pensions to elderly citizens

Iceland, Luxembourg, and Norway offer some of the highest annual pension payouts at over 30,000 euros. The below chart shows how European nations stack up in terms of which offer the highest annual pension payouts.

Both individuals and businesses can establish trusts

Business trusts can allow trustees to manage a beneficiary’s stake in a business, and more. There are many different specific types of business trusts.

'Payment in kind' is a compensation method that uses alternatives to cash

Companies can make payments using goods, services, or additional securities instead of cash, helping companies preserve their cash flow. Public BDCs receive roughly 8% of their investment income via PIK.

Experts say those receiving year-end bonuses may want to pay down high-interest debt

Experts say other sound options for spending bonuses include topping off an emergency fund or putting more money away for retirement.

Series I bonds are a form of government savings bonds created to shield your investments from inflation

Specifically, I bonds earn interest from both a fixed rate and an inflation rate. This article explains who might benefit from investing in I Bonds—for instance, people seeking to invest savings they do not need to access in the near future.

Insurance 'float' is money collected based on insurance’s pay now, collect later model

The insurance “float” has treated Warren Buffett well. The “float” has earned him, and Berkshire Hathaway, billions of dollars. This article includes a letter from Buffett to Berkshire Hathaway shareholders in 2009, discussing the impact of the “float” on his long-term success.

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Despite being favored by 87% of Americans, Congress does not have term limits.

See how Budweiser's famous Clydesdales spend their days at Warm Springs Ranch, where roughly 70 to 80 of the beer brand's giant horses can be found at any given time.

Apeirophobia is an overwhelming fear of living forever, perhaps stemming from the brain's inability to conceptualize an infinite life.

In 1939, baseball star Lou Gehrig delivered his inspirational 'Luckiest Man' speech after retiring due to the health condition that now bears his name.

For centuries, it was common to sleep in two shifts: a few hours at the beginning of the night, and a longer period beginning around midnight

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

'Silent' fireworks have gained more interest in recent years as a quieter celebratory option.

Power lines are dotted with large, brightly colored balls to improve the visibility of these thin wires to helicopters and small planes and help prevent potential crashes.

In 2026, Finland was named the world's happiest country for the ninth consecutive year based on its wealth, social safety network, and high life expectancy, among other factors.

Planarian flatworms are small, aquatic worms with exceptional regenerative capabilities. When cut, the worms can regenerate multiple bodies in a matter of weeks.

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

To reduce wrinkles in clothing, research recommends gentle wash cycles with more water and tumble drying with smaller loads and longer times.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

Read a deep dive on the 'all-purpose healing' peptide BPC-157.

In 1945, Surrealist artist Salvador Dalí and legendary animator Walt Disney began collaborating on a short film that was not completed until 2003, years after both men had died.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

The word 'jazz' evolved from 'jasm,' 19th-century American slang for 'energy'

Louisiana's 'Cancer Alley' is infamous for having some of the highest industrial pollution, toxic air emissions, and cancer risks in the US.

While the sun's gravity keeps the planets in orbit, their gravity also pulls on the sun, causing it and everything else in the solar system to orbit around a mutual balance point called the barycenter—the true center of the solar system.

Comedy legend Catherine O'Hara, star of 'Schitt's Creek' and 'Home Alone,' quit 'Saturday Night Live' after just one week to return to her old job.

Abraham Lincoln was almost assassinated weeks before his inauguration as he traveled from Illinois to DC through Baltimore in 1861; it took two independent claims for Lincoln to be convinced the threat was real