How much will you need for retirement? It’s a difficult question to answer, but one thing is clear – many Americans are worried that they don’t have enough. According to Retirement Insecurity 2019, a report from the National Institute on Retirement Security, 58 percent of Americans are concerned that they won’t achieve financial security in retirement, while 79 percent admit they don’t know enough about investing to ensure that their savings last through retirement.
For people looking for a more secure retirement, annuities could help. Before deciding whether annuities are right for you, it’s important to understand how they work and how they differ from other financial tools.
Annuities and Longevity
There are many reasons that make it difficult to calculate how much money you’ll need in retirement, but one variable stands out: your lifespan. No one knows how long they will live. While most people hope that they will enjoy a very long life, longevity comes with a financial drawback. The longer you live after retirement, the more money you need. If you’re lucky enough to enjoy a very long life, your retirement savings may run out.
Annuities provide a solution. Because lifetime annuities will continue paying out for as long as a person lives, the insured never has to worry about running out of money. This guaranteed income is good news for the millions of Americans worried about achieving a financially secure retirement.
M. Brant Watson
Senior Vice President
Heffernan Insurance Brokers
D: (925) 295-2506
M: (925) 330-1151