Blueprint Income Was Started For This Reason

Published December 20, 2017
We started Blueprint Income to bring back the pension so that everyone has an easy and secure way with a private pension platform to prepare for retirement.
  • We started Blueprint Income as a private pension platform, to combat the trend of declining retirement security in the United States.
  • Getting rid of the employer pension in favor of the 401(k) has made it harder to prepare for retirement and know when you have enough to sustain yourself in retirement.
  • Our early team came together on the belief that insurers should serve the role of pension providers and that we need a private pension platform where providers and customers can easily come together.

Today, the traditional retirement landscape isn’t working. With fewer than 5% of employers offering pensions, people are more anxious than ever about their prospects for a secure retirement. And rightfully so.  We are in dire need of a private pension platform.

In 2013, I was working at the US Treasury Department advising the Treasury Secretary and other senior officials about the future of retirement. What I was witnessing was scary — a rapid decline in the prevalence of defined benefit pensions, and along with it, retirement security. As a replacement to employer pensions, we moved to the 401(k), which simply does not do what a pension did. And while today the 401(k) is presented as THE way to prepare for retirement, it was originally only intended to be a pension supplement for corporate executives.

I decided that there had to be a better way than watching pensions decline and be replaced by the 401(k) and IRA, which are really just wealth accumulation tools that ask the average Joe to be an investment expert, risk manager, and fortuneteller all in one. I knew two things. First, I knew insurers were well-suited to play the role that employers had played in this new pension system. Second, I knew technology had to be at the center of what we did. It was going to be the only way to reduce costs and bring higher quality products to the end user.

In 2015, we opened our private pension platform, offering the easiest and lowest cost way to buy guaranteed lifetime income online. Think the simplest annuities.  Since 2015, we’ve been providing our customers with easy-to-understand information about annuities and the ability for them to get their own quotes in real time. It sounds simple, but this was unheard of in this industry until we started the company. We’ve served thousands of customers from all over the country, helping them get tens of millions out of the market and into guaranteed income. And we were written about in the New York Times, Philadelphia Inquirer, and Forbes to name a few.

But the products we offered weren’t accessible to the vast majority of people. You needed to have already saved a lot of money to buy a traditional income annuity. Generally, the people who buy income annuities are close to retirement and contribute approximately $100,000. This didn’t make sense to us. If you buy other financial instruments (think mutual funds, ETFs, stocks or bonds in your 401(k)), you can do it in small pieces over time. The technology exists to buy little by little over time, so shouldn’t it exist here?

Now we’re addressing those issues and putting all the pieces of the puzzle together. We’re connecting all the pieces and designing a solution to this problem. A private pension platform that’s fully digital using annuities that are easy to understand and easy to buy online. A solution that doesn’t require a $100,000 investment, but can be funded in the same manner in which people save throughout their career. A solution that does not depend on the market. And a solution that costs less to distribute and provides more value for consumers.

Through the private pension platform, we’re bringing back the best aspects of the employer pension, but improving it in important ways. Which ways?

Old Pension New Private Pension Platform
Backed by your employer (financial strength: ?) Backed by your insurer (financial strength: rated at least A by A.M. Best)
Generally ‘underfunded’ (the company usually holds fewer assets than needed to meet future expected liabilities) Generally ‘overfunded’ (insurers hold more assets than needed to meet future expected liabilities)
Only offered through your employer Offered to everyone using IRA, rollover, or post-tax funds
Can’t spread risk. All concentrated with your employer Easy to spread risk across insurers
Hard to know how much you’ll get at any given point in time Benefits clear and transparent
Can’t accrue additional pension income after leaving employer Benefits not impacted by a change in employer

How Can I Purchase a Personal Pension?

If you’re interested in buying a Personal Pension, you can do so here on our website. Click below to see what annual contributions into a Personal Pension will guarantee you in annuity retirement income. After just a few years in retirement, you’ll have recouped your initial investment, and the rest will be profit. A $5,000 contribution is necessary to start an account.

From there, you can fill out the information to have one of our specialists follow up with you, or continue with the enrollment process on your own. To do that, start with the Personal Pension Builder, where you’ll be able to set a goal for how to grow your pension over time. Note that all future contributions are optional, but it’s always great to have a goal.

 

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Matt Carey

Matt Carey

Financial Planning Professional

Matt Carey is the co-founder and CEO of Blueprint Income. He believes in the power of technology to make retirement simpler. Matt is a regular contributor to Forbes.com and has been quoted in both the New York Times and Morningstar.