Never Outlive Your Retirement Savings with "Income Annuities"

One of our challenges in retirement is not outliving our money. You all know that life insurance protects against dying too soon. Annuities protect against living too long!

Annuities provide "income insurance" in retirement, to make sure your money lasts as long as you do! Only annuities afford you the opportunity to never outlive your income. If you cannot protect your income in retirement, all of the other planning you have done may not matter. We purchase insurance to protect against uncertainties. We insure our homes, we insure our cars. Retirees may be forgetting about what it is that provides the very things we live on; food, shelter, clothing, the ability to visit friends and family. What about vacations? A very real danger would be to run out of money in retirement, to face retirement without the adequate income we need to live comfortably. Can we really insure our income to last a lifetime? Yes, we can with "income annuities".

We all have a greater chance of living longer, due to healthier lifestyles and advances in healthcare. The following slide illustrates the likelihood of 65 year old couples, one of whom will live to various ages.

Annuities will help ensure that you will not outlive your money.
According to the chart above, that if you take a typical 65 year old couple, there is an 84% likelihood that either the man or the woman, will live to age 85. According to a survey conducted in 2001, the American Council of Life Insurers found that 88% of Americans agree that, for their retirement, receiving at least some of their savings as regular income payments that they cannot outlive is important.

Annuities enable consumers to turn their savings into a monthly check!
Your deferred annuity is converted into what is called an immediate annuity, often called an income annuity. This immediate annuity will provide an income stream to you, a portion of which may be tax free, if working with non-qualified funds. You could target certain monthly expenses; mortgage, auto-lease etc- You could choose to insure your lifestyle; the ability to take vacations, the ability to visit family and friends, to play golf, to do what you want in retirement! Figure out the amount of monthly income you will need to do all of these things, and a calculation can be made to determine the amount of present dollars you will be required to place into an immediate annuity or a deferred annuity if you will not be needing the income for a few years. Annuities can provide the monthly income you need to live a more joyous retirement!

If you decide that you want to turn your savings into income, the following choices are available to you.

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