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July 1, 2020
Prepared for properly, retirement can be a time when well-laid plans come to fruition, providing the financial foundation for a lifestyle of comfort and leisure. If those are your goals for the next phase of life, you may want to consider if an annuity should be part of your plan. An annuity may provide a good option for saving money and paying yourself during your retirement.
Is it too late to start an annuity to enhance your retirement when you are already retired or preparing to to retire? It is not too late to invest if you are preparing for retirement soon or are recently retired. According to AARP financial expert Jean Chatzky, annuities “are addressing the primary fear that baby boomers in particular seem to have about retirement, which is that they are going to run out of money before they run out of time.”A report by the U.S. Government Accountability Office (GAO) points out that Social Security payments are not likely to be enough to cover monthly expenses. This is especially true when you consider that 43.1 percent of seniors choose to take their benefits early, thus reducing the amount of the payments. The GAO report also suggests that middle and high class families invest half of their savings in annuities. This option allows retirees to add to their monthly income.
Not everyone is an ideal candidate to buy an annuity. If you have a large line of heirs or are in a low tax bracket, for example, you may not benefit from investing in an annuity. However, if you fit into a higher tax bracket, are a baby boomer, or are in the early stages of retirement, an annuity can help ensure a minimum income for the rest of your life. New Retirement can help you craft a customized plan for a retirement worth looking forward to.
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