With all the options to put money away for retirement one must wonder; am I absolutely sure my plan will provide for me regardless of how long I live? The volatility of the market has, in the recent past, impacted 401k plans and other retirement programs decreasing values and negatively affecting income for some retirees.
More recently we’ve experienced positive results which have enabled our plans to grow. While this is good, the question remains, when you decide to stop working and draw on your retirement, will it guarantee you income you cannot outlive, regardless of what happens?
A few years ago I had a conversation with a person in their mid 80’s that had experienced decline in their retirement plan – it was having an immediate impact on and adjusting “life choices” they could make. They wanted to help out a family member,m and were limited because of the loss of income. For others it can mean the “basics of life” must be cut back.
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Today there are programs available to guarantee lifetime income. Additionally, these plans guarantee to increase your retirement income payout by a certain percentage (usually 5% -7%) each year leading up to retirement time. Best of all, once you begin to elect your retirement payment, you are not “locked” into a situation where your funds are not accessible to you in the event of an emergency or opportunity.
Additionally, these programs offer 5% – 25% bonuses (depending on state) that when you open this type of account is added to the build up your retirement nest egg.
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The “programs” I refer to are called Fixed Indexed Annuities. A plan that protects your retirement values from the downside of the market and guarantees income growth as you work your way to retirement, then provides an income you can never outlive.
Have you reviewed your retirement plan lately?
