What does retirement look like to you? Do you want to travel the world? Purchase a vacation home? Or simply enjoy the freedom to live life on your terms?
We all have our own unique retirement dreams. But there’s one goal most everyone has in common—ensuring we can afford the life we want. Guaranteed income can help you do it. Learn what it is, and what your options are for including it in your retirement saving strategy.
What is guaranteed income?
Guaranteed income for life is money you can’t outlive. It essentially replaces some or all of the paycheck you received while employed. Examples include Social Security or an employer-backed pension (which are becoming increasingly rare).
Another example is an annuity. Annuities are insurance contracts you purchase for your retirement income. They’re a way to convert a portion of your retirement savings into a steady income stream for life, so you can maintain the standard of living you’re used to—or even enhance it. If you can create enough guaranteed income to cover your retirement expenses, it can help provide confidence that you won’t run out of money as you grow older.
How does it work?
You buy an annuity with a portion of the retirement assets you already have, either with a one-time lump sum or a series of payments. This is used to create guaranteed income payments when you retire. Depending on the annuity, you can choose to how and when to receive income payments. Money left in your investment accounts can continue to grow, helping you keep pace with inflation and providing funds for some of the fun things in life.
Is it right for me?
Annuities can be a great addition to your retirement saving strategy. They can help you grow your savings now and allow you to create a source of guaranteed income when you need it. Talk to a financial professional to see if guaranteed income could help enhance your retirement income plans.
