Most books on personal finance try to provide comprehensive advice on all aspects of wealth management and investment planning. Chock-full of tips, suggestions, and ideas for helping you improve all the monetary aspects of your life, they aspire to become the encyclopedic go-to location for all things financial.
As you can probably tell, this is not that kind of book. In contrast to most other books about managing your money, we feel quite comfortable summarizing the main idea of this entire book in one simple sentence:
If you won’t have income from a real pension in retirement, make sure you go out and get some real pension income.
Everything we said in this book was our attempt to make the case for why this one idea is so important. Along the way, we defined the characteristics of a true pension and challenged you to confirm whether or not you have one. We provided some guidelines for how to determine whether your pension will truly protect your retirement, and we offered some suggestions about modern pension products that can help fill in your pension income gap.
Our motivation for writing this book came from the hundreds of discussions we’ve had on the topic of retirement income security. Over the years, when we asked people from all walks of life the very basic question, “Are you on track for a secure retirement?,” we got two general types of answer. The first kind of response was a sheepish admission: “No, I’m worried, and I should probably be contributing ...