Longer Living can be Funded with Retirement Annuities

Life expectancies for men and women in the United States are higher than ever – they have been steadily rising since the beginning of the 20th century. Better healthcare and better living are leading Americans to live longer, healthier and more active lives. The bad news associated with longer life expectancies is that most Americans do not have the necessary retirement funds to support themselves for this longer life. Traditional pension programs are almost extinct, and surviving on Social Security alone is not feasible for most people. Individuals that saved using retirement tools like 401ks, 403bs and IRAs are in a better situation, but still may not have enough money to fund their income needs for their entire life. For those who have already maximized their contributions to these tax-deferred retirement accounts, but are still wary about having enough, there is another option for saving additional funds in a tax-deferred way: retirement annuities.

Retirement annuities are similar to other retirement savings methods because taxes are not due on annuity gains until withdrawal or payout to the annuity owner is made. The original deposit and any interest earnings can grow tax deferred for years in an annuity. Retirement annuities come in many types, so customers should understand their savings goals. Are you looking for a way to save money over a longer period of time, say, more than a year? If so, then a multi-year deferred annuity may be the best option. There are two primary types of fixed deferred annuities: fixed and fixed-indexed. The difference between these annuities is the way the interest is calculated. Fixed deferred annuities pay a set rate over a set term, typically three years or more. Fixed-index annuities rely on the performance of a particular stock market index, such as the S&P 500, to figure its credited interest rate yearly. The amount of interest earned can be higher or lower each year, depending on the performance of the stock index, but unlike the market, a fixed-indexed annuity always earns a minimum rate of return. These types of retirement annuities are for saving in the long term, typically with surrender terms of five or more years.

An immediate annuity is best for immediate monthly income that can be guaranteed for life. In return for a lump sum, the issuing insurance company structures a set of payments that the immediate annuity holder cannot outlive. Even if you outlive the original amount of the deposit, you will receive payments until death. People close to retirement should consider immediate annuities if interested in securing a guaranteed retirement income.

The comprehensive web site at FixedAnnuityDirect.com gives an overview of retirement annuities options currently available. For those who have more questions, the Annuity Specialists are available Monday through Friday, 8:00 a.m. – 5:00 p.m., Pacific Time at 1-877-519-8599.