Annuity Awareness Month, Is your Clients’ Income Guaranteed?
July 1, 2019 by Talia Chaffee
June marks the beginning of Annuity Awareness Month, and a great time to educate your clients on the benefits of annuities.
Annuities can be an integral part of your clients’ long-term retirement planning strategy, providing direction to help them overcome unnecessary risks and important optional benefits that help them to protect their financial future. Annuities offer guaranteed death benefits and payment options to help meet retirement income needs. A key step in planning for retirement is to put strategies in place that maximize guaranteed income.
Why Guaranteed Lifetime Income is Important
The fact is, Americans are living longer. There has been a significant increase in the life expectancy of 65-year-olds over the past quarter century. Today, the average life expectancy for a 65-year-old male is 84 and female is 86.51. This compares with 81 and 84 years respectively in 20002. While an increase of three or five years may not seem dramatic over a lifetime, it can have a significant impact on retirement security. Additionally, health care costs continue to rise. For the average 65-year-old, health care costs will be $280,000 over their retirement, further necessitating the need for lifetime income.(1)
Using guaranteed income sources to meet essential expenses helps address the issue of living longer. Furthermore, these income sources provide some assurance to your clients that they can cover basic needs such as housing, health care and food for as long as they live. The remainder of their assets can then be directed to investments with more growth potential to help protect against inflation, rising health care costs and market volatility. Consider these sources of guaranteed income:
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