If you are 40 years old, you may ask yourself: Should I buy an annuity? Unfortunately, the answer to that question is not cut and dry. It depends on your specific situation. This guide will discuss why people purchase annuities at age 40 and what factors contribute to a successful decision. We also provide tips for how to decide if it’s right for you!
Should I Buy An Annuity At Age 40?
- You can guarantee your future retirement income today.
- You can receive an income that can’t be outlived.
- You can receive tax-free income for life if you use a Roth IRA
- You will only pay taxes on earnings if you fund the annuity with after-taxed money and no contribution limits.
- You can keep up with inflation throughout your retirement.
- You’re principal could be protected from a stock market crash.
- You can roll over your old IRAs and 401(k)s to an annuity.
How Much Income Can I Expect If I Buy An Annuity At Age 40?
If you’re 40 and want an idea of the income, you could receive for life starting at age 60, 65, and 70, below is the amount needed to fund an annuity today (at age 40) and guarantee your desired retirement income.
| Retirement Age | $25,000/yr. | $50,000/yr. | $75,000/yr. | $100,000/yr. |
|---|---|---|---|---|
| Age 60 | $237,326 | $474,472 | $711,708 | $948,944 |
| Age 65 | $193,524 | $387,048 | $580,573 | $774,096 |
| Age 70 | $163,646 | $327,292 | $490,937 | $654,583 |
Next Steps
An annuity may be the answer if you’re looking for a guarantee of future income in retirement while minimizing taxes. Request a quote today to see how much money you could receive each month for the rest of your life. You can also keep up with inflation throughout your retirement, protect your principal from stock market crashes, and even roll over old IRAs and 401(k)s into this investment vehicle. With so many benefits available, it’s worth determining if purchasing an annuity at age 40 is the right choice for you.
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Frequently Asked Questions
Can I buy an annuity at 40?
Yes. Consumers can buy an annuity at age 40. Most annuities have no minimum age limitations.