Personal Private Pension Plan (PPP)
Your own private pension — an IRA-based product with indexed growth, downside protection, and guaranteed lifetime income. Ideal for 401(k), 403(b), and IRA rollovers.
What Is a Personal Private Pension Plan?
A Personal Private Pension Plan (PPP) is an IRA-based financial product that functions like a traditional pension — but one you own and control, independent of any employer. It is funded with a lump sum contribution (typically from a rollover) and is designed to provide guaranteed lifetime income, with little to no market risk.
The PPP uses indexed growth, meaning its value is linked to the performance of a market index, but protected by a floor so that it cannot lose value due to market downturns. Depending on the product and options selected, it may also include long-term care benefits and a death benefit for your beneficiaries.
Think of it this way: Most Americans lost access to traditional pension plans in the 1980s when employers shifted to 401(k)s. A PPP gives you the ability to create your own private pension — on your terms, funded with money you already have — with income you can never outlive.
Three Ways to Structure It
A PPP can be structured to match your specific retirement goals. Choose the mode that fits — or combine them:
Growth Mode
Maximize index-linked accumulation. Ideal for those still building wealth who want their lump sum to grow before drawing income.
Income Mode
Prioritize guaranteed lifetime income payments beginning at a specified age. Designed for those at or near retirement who want predictable cash flow.
Hybrid Mode
Balance growth and income. The plan accumulates for a period, then transitions to guaranteed income — giving you the best of both structures.
An Excellent Rollover Destination
A PPP is one of the most effective destinations for retirement account rollovers. Money moves directly from your existing account into the PPP without triggering taxes or penalties, and immediately begins benefiting from indexed growth and downside protection.
Employer-sponsored for-profit plans
Non-profit & government employee plans
Traditional & rollover IRAs
Why roll over? The average 401(k) yields 5–8% APY before fees of 1–1.5%. A PPP structured for growth can capture index-linked gains with no management fees and a floor that protects every dollar of accumulated value. See the 401(k) rollover article for more detail.
Key Benefits
Guaranteed Lifetime Income
Income payments that cannot be outlived — regardless of how long you live or how markets perform.
Indexed Growth, No Market Loss
Cash value grows linked to a market index, but a guaranteed floor means the account value never decreases due to a down market.
Lump Sum Funded
Typically funded with a single lump sum (rollover), making it simple to implement without ongoing contribution management.
Long-Term Care Benefits
Many PPP products include income doubling provisions if you require assisted care or long-term care — a critical and often overlooked retirement need.
Death Benefit
A death benefit may be available to pass remaining value to beneficiaries, depending on the product and options selected.
Little to No Risk
Tier 1 classification — among the safest retirement vehicles available. The indexed floor ensures no loss of accumulated value.
Tax-Deferred Growth
As an IRA-based product, growth inside the PPP is tax-deferred until distributions begin, consistent with IRA tax treatment.
Flexible Structure
Configurable for growth, income, or a hybrid of both — matched to your specific timeline and retirement goals.
How It Compares
A PPP combines the best features of a traditional pension and a modern IRA — while eliminating most of the drawbacks of each.
| Feature | PPP | Traditional Pension | 401(k) |
|---|---|---|---|
| Guaranteed lifetime income | ✓ Yes | ✓ Yes | ✕ No |
| You own and control it | ✓ Yes | ✕ Employer controls | ✓ Yes |
| Protected from market losses | ✓ Yes (floor) | ✓ Yes | ✕ No |
| Indexed growth potential | ✓ Yes | ✕ Fixed only | ✓ Yes |
| Long-term care benefit | ✓ Often yes | ✕ No | ✕ No |
| Death benefit to heirs | ✓ Often yes | ✕ Limited/none | Remaining balance |
| Available without employer | ✓ Yes | ✕ No | ✕ No |
| Risk level | Tier 1 (lowest) | Very low | Tier 2–4 |
Who Is a PPP Right For?
Those with a 401(k), 403(b), or IRA to roll overA PPP is one of the best destinations for retirement account rollovers, providing better protection and guaranteed income than most plan alternatives.
People who want income they cannot outliveIf running out of money in retirement is a concern, a PPP’s guaranteed lifetime income eliminates that risk entirely.
Those planning for long-term careThe potential income doubling provision for assisted care addresses one of the largest and least-planned-for retirement expenses.
Conservative investorsTier 1 risk with indexed growth upside is ideal for those who want their retirement nest egg protected while still growing.
Anyone who lost access to a pensionMost private-sector workers no longer have employer pensions. A PPP recreates that security on your own terms.
Those wanting to leave a legacyThe death benefit option ensures remaining value passes to beneficiaries rather than disappearing when income payments end.
Every situation is different. The right PPP structure — growth, income, or hybrid — depends on your age, timeline, existing accounts, and retirement goals. We evaluate all of these before making any recommendation, at no cost to you.