What Should I Do With My Annuity At 70?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Options for Managing Annuities at 70

  1. Taking Income from Qualified Annuities for Long-Term Care Insurance:
  2. Rolling into a Long-Term Care Annuity:
    • Purpose: To specifically earmark funds for LTC needs.
    • How it Works: Transfer your annuity funds into a long-term care annuity.
    • Benefits: Offers LTC coverage and may have tax advantages.
  3. Rolling into a New Annuity with Enhanced Death Benefit:
    • Purpose: If you don’t need the income for yourself.
    • How it Works: The funds are transferred to a new annuity that offers a higher death benefit to beneficiaries.
    • Benefits: Helps in estate planning by enhancing the value passed to heirs.
  4. Using a Guaranteed Lifetime Withdrawal Benefit (GLWB):
    • Purpose: If you need regular income.
    • How it Works: This feature in some annuities provides a steady income stream while maintaining control over your assets.
    • Benefits: Ensures a consistent income in retirement, keeping the principal intact.

Comparison of Annuity Management Options at Age 70

OptionPrimary PurposeKey Benefit
Income for LTC InsuranceCover LTC expensesProtects other assets, ensures LTC coverage
Long-Term Care AnnuityEarmark funds for LTCTax advantages, dedicated LTC funding
New Annuity with Enhanced Death BenefitEstate planningIncreases inheritance for beneficiaries
Guaranteed Lifetime Withdrawal BenefitSteady retirement incomeConsistent income, control over assets

Related Reading: Are fixed annuities good for seniors?

Conclusion

Choosing the right strategy for managing your annuity at 70 depends on your individual financial needs and goals. Whether it’s providing for long-term care, enhancing the value passed to heirs, or ensuring a steady income, each option offers unique benefits. Consider your personal circumstances and consult with a financial advisor to make the most informed decision. Contact us today for a free quote.

What Should I Do With My Annuity At 70

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Frequently Asked Questions

Do seniors pay taxes on annuities?

Seniors do pay taxes on annuities, specifically on the earnings portion of withdrawals or regular payments. The amount taxed depends on the type of annuity and distribution method. Tax-deferred growth is common, but eventual withdrawals are subject to income tax.

Should you invest in an annuity at 72?

Investing in an annuity at 72 depends on individual financial goals, risk tolerance, and income needs. Annuities can provide guaranteed income but are less flexible and may have fees. Always consult financial and tax advisors for personalized guidance.

What do I do with an annuity that has matured?

For a matured annuity, you generally have options like annuitizing for regular income, opting for a lump-sum withdrawal, or rolling it into another investment vehicle. Tax implications and fees may apply. Consult a financial advisor for personalized advice tailored to your needs.

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, 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

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