By Marc H. Weiss
Archer Weiss Insurance & Financial Services, Inc.
As life spans grow longer, the risk that retirees will outlive their assets grows as well. Reducing this risk requires difficult choices in order to ensure your income lasts throughout retirement.
Make sure your retirement income lasts as long as you do.
How can you ensure lifetime income?
In a recent “Report to the Chairman, Special Committee on Aging, U.S. Senate,” the Government Accountability Office (GAO) found that “66% of Americans say they are worried about having enough money for retirement.” To ensure sufficient retirement income, the Report recommended “retirees systematically draw down their savings and convert a portion of their savings into an income annuity to cover necessary expenses.” The GAO believes an annuity is the preferred method of establishing a monthly income, instead of taking lump sum withdrawals to pay monthly expenses.
Keep working, if possible
Delaying receipt of your Social Security benefits is also recommended, if feasible, until you reach at least full retirement age. In some cases, it’s preferable to continue working while attempting to save additional monies.
To navigate difficult income choices during retirement, the GAO noted that strategies depend on an individual’s circumstances, such as anticipated expenses, income level, health, and your household’s tolerance for risks, such as investment and longevity.
Delaying Social Security can increase your benefits
Regarding the choices retirees have made, GAO found that most retirees rely primarily on Social Security and pass up opportunities for additional lifetime retirement income. By taking Social Security benefits when they turned 62, many retirees born in 1943, for example, passed up increases of at least 33 percent in their monthly inflation-adjusted Social Security benefit levels available at full retirement age of 66.
Annuities guarantee income for life
Surprisingly, few retirees purchase an annuity as a way of guaranteeing lifetime income, despite the many programs available. Instead, retirees tend to draw down too much of their retirement monies in the early days of retirement, not realizing the tremendous impact it will have on their financial security later in life. By doing so, retirees risk running out of money to cover their monthly expenses.
Companies selling annuities can clearly illustrate how participants will receive a lifetime of income. It’s only a matter of deciding which company can provide the best features and benefits for your investment.
In today’s economy, annuities are the most effective way to ensure a successful retirement plan, free from the worry of running out of money.
To learn more about annuities and how to guarantee your retirement income, leave a question in the comment section below or contact us today to discuss your personal situation.
Contact: Marc H. Weiss
Archer Weiss Insurance and Financial Services
(818) 610-8560
Filed under: Annuities, Financial Planning, Investment, Retirement Planning Tagged: annuities, annuity, Archer Weiss, guaranteed income, Los Angeles, Marc Weiss, retirement income, retirement planning, Social Security, Woodland Hills
