Outliving Your Nest Egg Is One of the Biggest Financial Hazards.
Each year we live longer. Modern medicine has extended our life and kept us active mush longer than ever before. When social security was enacted in 1935, Americans only lived a few years past age sixty five. Today life expectancy at retirement is over twenty years and one out of five of us can be expected to live into our 90’s. Ten percent will see age 100.
Selected market linked accounts offer an excellent longevity hedge, because they have options to provide lifetime payouts. A market linked (indexed) annuity is an insurance product designed to provide both an accumulation account and an income guarantee that can’t be outlived. The market linking account credits stock market gains that compound tax free. If a lifetime payout option is elected, the taxes on the earnings are spread over the expected duration of the payout. But the payout itself is guaranteed regardless of how long you live.
This is essentially longevity insurance. Outliving your savings accounts and other assets can be devastating. It can leave you homeless and at the mercy of family members and the welfare system.
All annuities have payout options, that provide some longevity protection. However, some indexed annuities have specific features that offer extra protections and enhanced lifetime benefits. Ask a financial professional about the retirement income guarantees built into this special class of market linked annuities.