Retirement Income Planning
It’s well-known that people are living longer, healthier lives. While this is good news, it is important for individuals to reconsider their retirement income planning to ensure that their money lasts as long as they do. According to the article, “Investing your Lump Sum at Retirement,” by New York Life Insurance Company and The Wharton Financial Institutions Center, there are five major problems approaching Americans. These five issues are referred to as, “the perfect storm.” Here is a quick summary of the first three problems, and why distribution planning through an annuity is a brilliant solution.
The decreasing levels and importance of Social Security benefits: According to the article, relative to past generations, individuals who are employed today will receive much lower Social Security payments. In addition, the effect of this problem is worse for higher contributors. People with lower earnings are projected to receive a rate seven times higher than for those whose earnings were taxed at the maximum level. As a major source of retirement income for life, many individuals will not receive what they expected from Social Security, so they will need to turn to another type of regular income.
The demise of defined benefit (DB) pensions: Since 1983, the number of pension plans in the U.S. has declined from 175,000 to less than 25,000. During this time, there has been only one new pension program in the U.S. Under a regular pension program, the retiree is guaranteed to receive a set monthly amount for a long as he or she lives. However, through a 401(k) or 403(b) plan, there is no such guarantee for either the amount or the duration of the income. We offer the best fixed annuity programs, which will guarantee you a set income that will not fluctuate for the rest of your life.
The aging of the baby boom generation: The infamous baby boomers, people born from 1946 to 1964, currently make up more than 27% of the U.S. population and 47% of all households. The Baby Boomers are the largest generation in American history to turn 60 and to enter the retirement force. It is this group who will rely upon Social Security, retirement plans, and assets.
Conclusion: Whether you need a fixed or variable annuity, we can help you plan for your retirement the safe and easy way. AnnuityQuickQuote.com offers a wide variety of annuities that are designed to provide you with the income you need for the rest of your life. We offer annuities such as immediate annuities, single premium immediate annuities, period-certain annuities, joint and survivor annuities, and much more. Please contact us today to start planning for a wonderful retirement.