Income Annuities: Helping Your Savings Last a Lifetime
Will your retirement savings last as long as you do? One way to help ensure that they do is to use an income annuity to turn part of your savings into a stream of income that is guaranteed* to last for life.
With retirement potentially lasting 30 or more years and fewer employers offering traditional pensions, retirement savings need to stretch farther and cover more these days. If you have concerns about running out of money in retirement and want to protect against that possibility, consider adding an income annuity to your retirement income plan.
An income annuity is a contract between you and an insurance company that guarantees you an income for life or a specified number of years in return for your upfront premium payment.
If you want the income payments to begin immediately, consider an immediate income annuity. This type of annuity is purchased with one premium payment, usually at or soon after retirement, and the income payments to you begin nearly immediately.
If you want the income payments to begin later on, consider a deferred income annuity. With this type of annuity, you pay the premium now, or over time, and the income payments begin on a date you select, which can be decades from now. For example, you might purchase an annuity at age 60 and choose to have the income payments begin at age 80. The advantage of waiting for the income payments to begin is that the longer you wait, the higher the income payments will be when they start. And that extra cash in the later years of retirement when your savings may be running low may make a significant difference to your quality of life.
Copper Leaf Financial is a fee-only, fiduciary firm and we can help you by providing advice on all financial matters. With offices in Williston and Rutland, Vermont, we develop a customized wealth management (financial) plan designed to integrate every aspect of your financial life. This is "true wealth management" - a holistic, all-encompassing approach that goes beyond just investment advice. Call us today at (802) 878-2731 to schedule a strategy session and begin building your road map to financial success.
*Guarantees are subject to the claims-paying ability of the issuing insurance company.
Article published in Copper Leaf Financial publication Eye on Money - July 2018 issue.