Annuities In A Modern Financial Strategy For A Better Retirement

Shawn Plummer

CEO, The Annuity Expert

Are you looking for a way to ensure that you have a comfortable retirement? If so, you may want to consider adding annuities to your financial strategy. Annuities can play an essential role in ensuring that you have the money you need when you retire. This guide will discuss how annuities can help improve your retirement planning. We will also look at the different types of annuities available and how they can fit into your overall plan.

Utilizing Annuities To Protect Against A Lengthy Retirement

It was previously simple to enter retirement without worrying about money since a company pension, Social Security benefit, and personal savings were typically sufficient to get someone through. But, unfortunately, that is no longer the case.

Only 7% of retirees rely on these income streams to ensure their retirement security. With most defined benefit pensions being phased out and Social Security payments never designed to be the sole source of retirement money, today’s retirees require a fresh approach to address the requirements and problems of today’s world.

Indexed annuities (FIAs) provide consumers with additional choices to assist customers in building the money they need for a long retirement.

Features And Flexibility Of Annuities

Misconceptions about annuities or a lack of understanding of how these products function and the advantages they provide may plague some consumers. You may have heard annuities to be too pricey or complex, making them hesitant to consider them as a retirement planning strategy.

On the other hand, today’s annuities include capabilities and flexibility that didn’t exist previously and can help meet the varied and changing demands of today’s retirement savers.

Indexed annuities offer protection from stock market losses and can be used to accumulate tax-deferred funds.

How Annuities Solves Retirees Problems

Annuities have been around for a long time. While much has changed over the years, the goal of annuities has stayed consistent, which is to assist retirees in overcoming the problem of outliving their money. An FIA may help pursue the growth of retirement savings while also providing some security if the stock market drops.

Annuities can help individuals develop a more secure retirement by providing three important advantages to their income plan:

  • Growth potential: Earn interest based on the upward movement of a stock market index provides opportunities for accumulation, even in a low rate environment.
  • Flexibility: Waivers and benefits that provide liquidity for unplanned needs.
  • Stability: Reduce the risk of losing money due to stock market crashes.

Indexed annuities allow consumers to pursue growth potential with guaranteed protection from stock market loss. Additionally, indexed annuities offer more significant growth potential than traditional fixed annuities.

How Annuities Customize A Retirement Plan

The need for flexibility is often a common theme among retirement plans because life is unpredictable, and people’s requirements and objectives can fluctuate with age. As a result, many FIAs include provisions that allow seniors to withdraw money free of charge, waive terminal illness, get confinement releases, and create a legacy through a death benefit. They may also provide the option of a fixed retirement income “paycheck,” in which a retiree receives monthly payments for the rest of their lives.

The prospect of longevity, cost increases, and inflation are just a few of the dangers that retirees will face in the years ahead. Modern annuity designs may assist in addressing these problems while also providing a helpful tool for retirement planning.

Since the burden of a financially stable retirement is primarily placed upon the retiree, having an effective retirement income plan has never been more vital. Therefore, annuities may be crucial to your retirement success.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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