Pension Advance Companies : Questionable Business Practices

Pension advances and pension investments are products that, while based on or related to pension benefits, are generally distinct from the pensions themselves. A pension advance is an up-front lump sum provided to a consumer in exchange for a certain number and dollar amount of the consumer''s future pension payments plus various fees. Pension investments, the related product, provide investors a future income stream when they make an up-front lump-sum investment in one or more pensioners'' incomes. There have been recent concerns about companies attempting to take advantage of retirees using pension advances. This book describes the number and characteristics of pension advance companies and marketing practices; evaluates how pension advance terms compare with those of other products; and evaluates the extent to which there is related federal oversight.