Planning for retirement is becoming more important than ever. According to the Bureau of Labor Statistics and with less than 21 percent of private sector employees covered by traditional pension plans, Americans must take a proactive approach to ensure their retirement. They will need to be able to rely on their own savings in retirement to ensure a steady income and to plan for the eventuality of outliving these savings.
Retirement can be a great way to make a difference. “personal pension plan”An insurance product known as an immediate annuity guarantees you a steady stream for your entire life. Here are some tips to help you understand the benefits of an immediate annuity. “personal pension”A direct annuity could fit into an overall retirement strategy.
Diversify. You can use a portion your savings to purchase an annuity right away as part of your overall retirement strategy. You can transfer investments that follow the market to other areas in your retirement portfolio depending on your risk tolerance.
– Finance the plan. You can fund an immediate annuity with part of your 401k or IRA savings, or other savings that you have accumulated. You can also make use of money you inherit, your downsizing funds or the money left over after paying off your child’s college tuition.
– Easy access to funds. Your needs and circumstances will change over the course of your retirement. Personal pension products often don’t allow you access to your money after your income starts. An immediate annuity offers this feature if you are worried about losing access to your future income.
Fight Inflation Inflation can eat away at your retirement income. Some personal pension products provide annual payments increases to keep up with inflation.
Leave a legacy. Look for products that will pay your premium back to your spouse, or provide ongoing payments, even if your life expectancy is not met.
Guarantee it for your entire life. It is possible that your retirement income will need to last 20-30 years, 30-40 years, or even 40. You should choose an immediate annuity that is offered by a company with a proven track record of financial stability.
You can find more information on products for retirement income here www.newyorklife.com/GLISend an email to [email protected]You can write to Guarantees matter, New York Life Insurance Company 51 Madison Avenue New York, N.Y.10010.
