Ten thousand Americans are turning 65 each day, including a couple that we’ll call Stu or Helen. Helen and Stu are in excellent health and could retire within 30 years. Their greatest fear about their impending retirement will be their possible longevity and running out money to pay their bills while still enjoying their time.
Helen and Stu participated in the 401k plans of their companies. They are both responsible for their own retirement security, as they do not have traditional pensions like many other workers.
Fortunately, Helen and Stu have the option of creating a family. “personal pension.”You can use some of your savings to purchase an annuityThey can ensure a steady stream income throughout your life.
An immediate annuity allows them to make a lump-sum payout to a company that insures life. The company will then send them the amount they choose, whether it be monthly, quarterly, annual, or a combination of both. They have the option to receive income payments for a set amount of years, or as a guaranteed stream that they will never run out of.
You might also think about purchasing a deferred nuity. This allows your savings to grow tax-deferred in an accumulation phase and then they can decide when payouts will begin. This annuity is suitable for those who are in retirement for many years or aren’t looking to receive income immediately.
They can decide how their money grows in the accumulation phase with a deferred nuity. An annuity that is fixed earns interest at a certain rate. An index annuity is tied to a market index like the S&P 500 stock price index. Variable annuities are tied to market indexes like the S&P 500 stock price index. Savings are put in subaccounts and invested in stocks, bonds, or both.
Another option is a deferred annuity that provides a stream of guaranteed income to the beneficiary once they reach a certain point, typically around 85.
Annuity owners believe that annuities are a good way to save for retirement, according to surveys. Annuities are among the most tightly regulated financial products available. Life insurers must adhere to all laws and regulations, from product development to marketing to sales. This helps prevent fraud and protects consumers. In addition, most states provide a “free look”Customers can return annuities to insurance companies for a partial or full refund within a certain period.
Planning for retirement can be difficult. Annuities provide a guaranteed income that can last a lifetime for retired people like Stu or Helen.
For more information about annuities, please visit www.acli.com.
