Retirees with a Guaranteed Income Are Happier, Live Longer
Retirees who are surrounded by their family and friends and who receive a substantial check every month for the rest of their lives are much happier, according to an article published in Time and The Wall Street Journal. They also live longer, studies show.
SEE MORE Myth Busters: Examining the Facts About Index Annuities
This makes sense because retirees' main concern is that they will run out of money. People who have a steady income for life take a lot of the stress out of their lives.
Scroll to continue with the content
Microsoft - New Age of Business
Explore Power Platform with Microsoft and partners
Learn how you can innovate faster by enabling everyone to create new business solutions with the Microsoft Power Platform.
Retirees used to get enough social security and a traditional pension to cover their living expenses. But only a few employers are now offering pensions, which obliges the employee to save. Social security contributions make up only around 40% of the average income earner's early retirement income.
Income that lasts as long as you do
How Can You Get Extra Guaranteed Income? Income pensions offer an often overlooked solution. In the case of income pensions, a lump sum or series of premium deposits is converted by an insurance company into a source of income that begins either immediately or, in the case of deferred income pensions, at the future age you choose and usually begins no later than 85 years. Most pensions offer an option for a guaranteed income for life. In many cases, you can also designate a joint income recipient so that your spouse can also receive a guaranteed income for life.
Research shows that annuities offer both psychological and financial benefits. According to a study by the LIMRA Secure Retirement Institute, retirees who can afford their preferred retirement lifestyle - even if they are 90 years old or older - are safer than retirees who have no pension.
SEE MORE how index-linked pensions buffer against market shocks like the coronavirus crash
73% of retirees who have a pension believe they will be able to live the lifestyle they want in retirement, compared to just 64% of retirees who don't. Almost 7 in 10 retirees who have a pension are more confident that their savings and investments will not run out when they turn 90, compared with 57% of retirees who do not have a pension, according to the 2016 LIMRA survey.
An annuity offers a solution to creating long term income security along with the happiness that comes with it.
Only invest when it is right for you
Annuities are powerful, but not for everyone. Only invest when you know it is the right product for you.
Before buying, ask yourself:
In addition to social security and other sources, how much income do I need to cover my expenses?
Do I need additional income for anyone other than myself?
How long do I intend to leave money in retirement?
When do I expect income payments?
Can I access the funds from the annuity if I need them?
Do I have enough cash in reserve to meet my expected needs?
Do I use the funds to save for retirement to generate a retirement income - or both?
Once you've decided that an annuity is the right choice, it's time to decide which type is best. Many different types of annuities are available in the market today. So knowing how to use the product will help you make the best choice.
Many annuities offer a guaranteed interest rate and capital. Most variable annuities, however, offer an opportunity for higher returns, but do not guarantee profit or capital. Immediate annuities start paying out income within a year, while deferred annuities allow you to make deposits for many years before you start taking an income stream.
Just like with a car, there are many models that you can use to get from point A to point B. However, the model that best suits your specific needs will depend on its specific features and benefits.
An annuity can be purchased with a lump sum payment in cash or by rollover of funds from an IRA, 401 (k), or other retirement account. You can also make a number of regular, smaller deposits over time. Until you make withdrawals, you will not pay any income tax.
A safe retirement depends on you having a steady income for your life to meet your basic needs and afford the extras that make life comfortable. A lifetime income pension can complement social security and take the worry out of retirement as your monthly payments are guaranteed to continue even after you are over 100 years old.
SEE MORE Turned off by low CD prices? Consider a fixed pension
You should check here to buy the best price guaranteed products.
Toyota's 37-year-old 70-Series Land Cruiser gets updated for 2022
Sophie Turner is called a ‘hypocrite’ for playing Princess Charlotte in TV parody ‘The Prince’
MyKayla Skinner Gets Last Olympic Chance And She Has Message For Simone Biles
Footage shows a 'frustrated' contractor using an excavator to wreck a new apartment complex over unpaid work
Who really needs an electric car with 500 miles of battery range? Nobody or maybe everyone
This Ice Cube Trick Will Save Your Houseplants, Seriously