If you’re a boomer you probably recall hearing the Vulcan greeting “live long and prosper” from “Star Trek’s” Mr. Spock. Who among us wouldn’t want to have a future of longevity and prosperity?
The good news is that seniors today are living longer than ever before. The bad news is that longevity can pose difficulties for achieving prosperity, and many of today’s retirees may not be able to maintain their financial independence in their elder years. With advances in medicine, boomers are living longer in retirement, oftentimes much longer than they planned for financially.
US News and World Report
listed “Running out of money” as a key fear of 59 percent of Americans over age 50. Unfortunately many will live out that fear unless they create a reliable income strategy for their retirement years.
What does such a financial road map do for a retiree? More than anything else, it gives them confidence throughout their journey; it’s their GPS that keeps them on track and gets them to their financial destination.
In my line of work I see firsthand the value of developing retirement income goals and following the strategy through to retirement. I also witness the confidence it instills in those following the path they’ve chosen.
A recent study bears out my experience and heartfelt beliefs in this respect. A new
LIMRA Secure Retirement Institute study reveals that annuity ownership increases the chances you will be confident about your retirement lifestyle. In fact the study showed that 9 out of 10 annuity owners had a positive outlook about the lifestyle they will enjoy during their retirement years.
When it comes to a retirement strategy, one leading factor that can make the process more difficult than it was for our parents and grandparents is the longevity factor. That is a huge variable that’s a cause of much angst. The difficulty is weighing the balance between how much can be drawn from retirement assets and the risk running out of money before you die.
Since we can’t accurately predict how long we will live, it is important to consider including a fixed or a fixed indexed annuity as a part of your strategy — in particular an annuity that offers a guaranteed lifetime withdrawal benefit, which provides a lifetime income stream that you cannot outlive. The guarantee of lifetime income allows you to have confidence in knowing that your retirement strategy covers your finances no matter how long you live.
I’m often asked, “How can these annuities provide this type of protection guarantee?” The simple answer is that annuities are insurance products and many are specifically designed to protect your money and guarantee you income for life, even if you live to age 110.
Insurance companies are responsible for annuity contracts and they are drawn based upon actuarial tables and calculated risks that are all assumed by the insurance company.
It is important to note that insurance companies are required to show that they have the financial strength to meet the obligations of the guarantees — and to ensure that the companies keep these promises, they must go through regular audits by state regulators.
To further protect the consumer, state laws require insurers to review the sale of every fixed annuity before a contract is issued to determine if the recommendation is suitable based on the financial situation and retirement goals of each individual purchasing a fixed annuity.
The key is to work with an experienced annuity professional who understands the issues associated with building a retirement income strategy, and is familiar with the products such as fixed indexed annuities and riders that are available in your particular state.
Despite some common obstacles that present themselves when preparing a retirement strategy, it’s important to meet with a professional who will evaluate your financial needs after fully assessing your complete financial picture.
There are some common threads among those who are happiest in retirement. Happiness in retirement is related to confidence in finances. There is a greater level of confidence in those with defined income goals in retirement. Put your strategy in place today and you’ll be much more likely to achieve your financial goals no matter how long you live. Put the power of contractually guaranteed income to work for you.
Reach out to a Crown Atlantic annuity professional — we’d be happy to meet with you and help you define your unique path to a happy retirement. Go online to CrownAtlantic.com/Protect or call toll free today 855-221-5546.
Joe Stark is the CEO of Crown Atlantic Insurance, LLC in Boca Raton, Fla. Stark is an insurance industry veteran with more than 25 years of experience. For more of his reports, Go Here Now.
© 2023 Newsmax. All rights reserved.