One of the biggest differences between our parent’s retirement and ours is the loss of the pension. Companies just don’t offer them anymore. The Employee Benefit Research Institute reports that 45% of Baby Boomers are at risk of running short in retirement. This is a huge concern, and we want to make sure we help our clients maintain their standard of living after they stop working and not outlive their money.
Annuities are gaining popularity as one solution to this problem. Annuities can be used as a way to build up your retirement savings during your working years, and the tax advantages you’ll get by having your money in an annuity are usually very appealing.
Once that money has grown for a certain number of years, you can reinvest all or some of it in another annuity or something entirely different. You also have the option to convert that money into guaranteed income payments for life or scheduled withdrawals over a certain number of years.
Annuities don’t have to be a complicated product and the type of annuity you buy really depends on your situation. Take some time to learn about the different types of annuities available, and if you have questions, give us a call.