Am I Ready To Retire Now?

Shawn Plummer

CEO, The Annuity Expert

Criteria for Retirement Readiness:

  1. Retirement Income Sources: Includes pensions, savings, investments, and annuities.
  2. Social Security Income: A crucial part of post-retirement income.
  3. Pre-Retirement Monthly Pay: Benchmark for assessing retirement readiness.

Role of Annuities in Retirement:

  • Stable Income Source: Annuities provide a steady income, which can be crucial in maintaining a consistent lifestyle post-retirement.
  • Supplementing Income: They help bridge any gap between Social Security and other retirement incomes to meet the 75% threshold of pre-retirement monthly pay.

Example:

  • Pre-Retirement Monthly Income: $5,000
  • Required Retirement Income: 75% of $5,000 = $3,750
  • Social Security Income: $1,500
  • Gap to be Filled: $3,750 – $1,500 = $2,250

In this case, annuities and other retirement income sources should provide at least $2,250 per month to meet the retirement readiness criteria.

Retirement Readiness Calculation

Income SourceAmount ($)Percentage of Pre-Retirement Income
Social Security1,50030%
Required from Other Sources2,25045%
Total Required3,75075%

Conclusion:

If your retirement income, including Social Security, equals 75% of your pre-retirement monthly pay, you are likely ready to retire. Annuities can play a key role in achieving this income level by providing a stable and predictable source of income, complementing other retirement savings and investments.

Contact us today for a free quote.

Am I Ready To Retire Now?

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us
First
Last

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top