In less than a century, life expectancy has increased by an average of 30 years. Science and technology have made it possible for individuals to live longer than ever before. Throw in improvements in education, cognitive evolution, social networking and planning opportunities, and the aging process has definitely been slowed down.
And while this may sound wonderful, longer life spans have also become one of society’s biggest challenges as it presents unique dilemmas in the area of both public policy and personal behavior.
Many of the 78 million baby boomers consider living longer a risk as they are quickly confronted with the looming threat of outliving the resources they have saved for retirement.
In order to successfully and peacefully retire, while still enjoying a longer lifetime, the risk of inadequate retirement funds has to be off the table.
Yet, it is not the only risk. When it comes to retirement planning there are many – market risk, inflation risk, deflation risk, the risk of needing long term care, etc. Retirees and pre-retirees need to consider these potential financial drains. Without adequate consideration and planning, the gift of living longer can actually become a risk multiplier: the longer folks live, the more vulnerable they are to all other risks.
No longer are companies offering pension plans and Social Security benefits may not be around forever. Throw in rising healthcare expenses and the lingering effects of the housing crisis, and its evident that now, more than ever, retirees and pre-retirees must to take responsibility for their own financial future and well-being.
The gift of an extended life span demands that baby boomers seek ways to possess vastly more retirement assets than previous generations. There are safe investments to add to the retirement portfolio. The lifetime income annuity, what many insurance companies call a SPIA (Single Premium Immediate Annuity) is one type of product that can guarantee a source of income to help cover retirement expenses. There are indeed various types of annuities to explore with the help of a financial professional. Yet as with any investment or insurance product, careful consideration must take place in order to successfully achieve one’s retirement goals.
Source: Spicer Wealth
Respond and learn how financial products, including insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice
Annuities are insurance products backed by the claims-paying ability of the issuing company; they are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity
Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Annuities are long-term, tax-deferred vehicles designed for retirement and contain some limitations.