You’ve done everything right. You saved while others spent. You invested in your 401(k). You paid down your debt. And now you’re ready to start seriously planning for retirement. But even with all of the steps you’ve taken, are you prepared to maintain your financial independence once you give up that steady paycheck?
If you aren’t sure, you’re not alone. An April 2015 survey by the Insured Retirement Institute, “Boomer Expectations for Retirement 2015,” found that only 27% of baby boomers are confident they have enough money for retirement, and that 28% of working boomers are planning to put off retirement until age 70 or later (up from 17% in 2011). With uncertain financial markets, rising health care costs and increasing average life expectancies, it can be difficult to know how much you should save for retirement, let alone how to make it last throughout your retirement years.
Many financial experts advise that fixed income annuities are a simple way to take part of your savings and turn it into a life-long source of income, like a second social security check. In exchange for a lump-sum payment (or multiple payments over time), an insurance company will send you, beginning on a date of your choosing, a fixed monthly check for the remainder of your life.
If you ask people who’ve purchased annuities to supplement their income in retirement, they’ll likely tell you that their annuity payments provide peace of mind to help make budgeting easier and plan for expenses. And 80% of those annuity owners expect their savings to last for life, with enough left over for travel and leisure activities.1
Retirement is a wonderful time of life, and one you’ve worked hard to prepare for. But it can be a time of uncertainty, with many unpredictable expenses. An income annuity can help you better prepare for life’s ups and downs. And if you can keep the unexpected from derailing your careful planning, then you’ll be one step closer to maintaining your financial independence and getting the most of your retirement.
Learn more about annuities in the New York Life Learning Center, or call 1-800-313-6841 to have your questions answered by a knowledgeable representative.