When it’s time to retire, you don’t want to worry about having enough money to live and enjoy your life. With Annuities, you choose the period of time to have benefits paid. You could choose to get a monthly payment for the rest of your life or pay a one time lump sum payment if you want to start receiving payments right away.
With Fixed Indexed Annuities, premiums are tied to an index and credited in a similar fashion to IULs. As with IULs, Fixed Indexed Annuities offer principal protection and a death benefit, with the possibility for gains contingent upon market performance.
- A type of tax-deferred insurance product.
- Can be structured to provide income for life, acting as another resource for retirement income.
- Provides protection from market decline with a guaranteed floor.
According to key retirement statistics, half of retirees aged 65 years or older have less than $24,224 in annual income. Yet, the median annual pension ranges from $9,262 to $22,172. However, retirees spending habits are said to be more than double that amount. So that would lead us to believe our seniors are literally having to rob Peter to pay Paul. The question is how long can they do that?
What’s even more alarming is that 25% are said to not have a single cent in retirement savings. That’s one-fourth of the American population.
People of Color, African Americans, in particular, are facing even greater challenges going into retirement. The majority depend on Social Security Benefits as retirement income. But we’re watching and are told that these benefits will likely run out by the time they expect to retire. By comparison, People of Color face disparities in income, homeownership, fear of investing, lack of retirement planning and little to no generational wealth.
The right agent will sit down to do a Financial Lifestyle Strategy to determine the need and best vehicle to maximize savings for retirement income. Individuals between the ages of 22 – 55 should be planning their savings strategy for retirement now.