| If you are receiving a pension, there is a now a | | | | it is likely suitable for only for those in a |
| program that will allow you to get an advance on | | | | particularly dire financial circumstance. Therefore, it |
| those pension payments. Its called pension funding, | | | | is highly recommended that anyone seriously |
| and it does not matter whether you are receiving | | | | contemplating pension funding first seek qualified, |
| a civil service (federal, state and local | | | | independent financial advice prior to engaging any |
| government), military, police, fire, EMS, teachers | | | | pension funding company. |
| or corporate pension, you can get an advance | | | | Pension funding can be used for debt |
| when you need one. | | | | consolidation, a down payment for a home, |
| Pension funding, what is it all about? Pension | | | | investments, pay education expenses (tuition), |
| funding allows pensioners to borrow money from | | | | satisfy a divorce settlement, start or expand a |
| their pension WITHOUT taking a loan. It provides | | | | business, purchase a vehicle, pay medical bills, or |
| an up-front lump sum of cash to pensioners in | | | | for any legitimate use. |
| exchange for receiving a number of the | | | | Most type pensions are acceptable for pension |
| pensioner's future pension payments. | | | | funding: civil service (federal, state and local |
| Pension funding is gaining in popularity as the | | | | Government); post office; police, fire, EMS, |
| number of Baby Boomers reaching retirement | | | | teachers, military, professional athletes, and |
| age grows. Unfortunately, an alarming number will | | | | corporate (public and private). |
| retire with little-to-no assets to their name. For | | | | Pension funding has a number of advantages: get |
| those seeking to borrow money from traditional | | | | a lump sum of cash in as little as 2-4 weeks; its |
| financing sources, this can be an impossible | | | | not a loan, rather, an advance to be paid back |
| situation as they simply will not have the required | | | | through future pension payments; perfect credit is |
| collateral. The only asset many will have will be | | | | not necessary; and, depending upon the |
| their pension. Lending institutions will normally not | | | | pensioner's tax status, pension advances may not |
| count these as steady income. | | | | be taxable (NOTE: consult with your financial |
| In this situation, many find it necessary to return | | | | counselor.) |
| to work. However, for a great number of those | | | | With all of its advantages, pension funding also has |
| pensioners, age, disability, lack of suitable | | | | some distinct disadvantages: pension funding is |
| employment opportunities, etc., makes this | | | | expensive and should be used only if traditional |
| situation next to impossible. Sad fact: many | | | | funding is not available; an advance decreases |
| pensioners find that their golden earning years are | | | | future pension payments; though perfect credit is |
| behind them...and they find themselves left with | | | | not needed, a pensioner must have reasonably |
| very few options. Enter, pension funding. | | | | good credit; pension advance require large |
| How does pension funding work? It's really simple: | | | | amounts of documentation and complex legal |
| pension funding companies buy a number of years | | | | issues; some pension funding companies exchange |
| of pension payments for a lump sum paid to the | | | | eight years of pension payments for a large |
| pensioner today. The company then collects its | | | | up-front lump sum; and most pension funding |
| payments from future pension payments. The | | | | companies require that they be add as a |
| money the pensioner receives from the pension | | | | beneficiary to an existing insurance policy. |
| funding company is not a loan. It is an advance | | | | Special Note for Military Pensioners: there are |
| against future pension payments. The minimum | | | | pension funding companies which do make |
| monthly benefit amount that many companies will | | | | advances on military retirement. Any person |
| accept as repayment is $400. | | | | wanting an advance on their military retirement |
| The pension funding process: 1. the pensioner | | | | must, in fact, be retired from the military and |
| applies for a pension advance; 2. the underwriting | | | | currently receiving a military retirement check. |
| department requests a credit report; 3. the | | | | (Some companies require the military retiree to |
| funding company sets up an automated advance | | | | have been retired and drawing a pension for six |
| repayment system; 4. once approved, the | | | | (6) months before they will consider providing an |
| pension company will require that it be added to | | | | advance.) It is important to note that pension |
| an existing policy; 5. after approval, the lump sum | | | | funding companies are the only financial outlets |
| will be directly deposited into the account of the | | | | that provide advances on military retirement pay. |
| pensioner's choice. | | | | You now have the knowledge to help those |
| Who is pension funding right for? Pension funding | | | | pensioners around you. Spread the word. Inform |
| is a retirement planning option. As such, only those | | | | all pensioners and everyone you know about the |
| who are receiving a pension are eligible. Secondly, | | | | power and possibilities of pension funding. |