We lament that lifetime pension from employers are now a thing of the past. Maybe that’s why the greatest retirement fear of most boomers and seniors is outliving their money. If there were only a way that we could take some of our 401(k) or other retirement money and convert it into a lifetime we couldn’t outlive! Well, there is!As you probably know insurance companies will insure practically any risk you face…and longevity risk (the risk of living too long for the money you have saved for retirement) is no different.
In recent years the aging of the U.S. population and the vast, and growing, number of retirees (and near-retirees) has prompted insurance companies to develop new products that guarantee a lifetime income you can’t outlive. Virtually every insurance company that offers annuities can cover this risk. You place with them a sum certain of money and they guarantee you a lifetime annual income. The amount will depend on the amount of money you deposited with them, your age and gender.
Occasionally, they’ll take your health into consideration but not always. What’s more, you do not lose control of your money with this new lifetime annuity option. With most annuities you can start, stop or store your income payments — you can even change your mind and withdraw the remaining money in a lump-sum. Since inflation is a continuing part of our lives, several annuities has begun to include cost of living protection which allows your annual income to rise with inflation. So they next time you’re lamenting that you don’t have a lifetime pension like your parents or grandparents, call your financial advisor and ask about annuities with guaranteed lifetime withdrawal benefits or guaranteed lifetime income benefits. Or better still, learn a bit yourself first by doing an Internet search for “annuities with guaranteed lifetime withdrawal benefits”. Here are some links that may be helpful.
http://www.sunlife-usa.com/sun/sl_24.cfm
https://www.forethought.com/ffs/forethought.portal?_nfpb=true&_pageLabel=forethought_annuities_products_guar_dest
https://www.forethought.com/ffs/forethought.portal?_nfpb=true&_pageLabel=forethought_annuities_products_dest_income
http://www.ing-usa.com/us/aboutING/pressreleases/1030468.html
Pension plans and 401Ks are definitely a big concern of mine. Being at the point of retirement, I was worried when I realized that I didn’t prepare for it. I never thought the day would come when I would have to think about this part of my life. However, my son gave me a copy of the “Freeway Guide Retiring Right” and it seriously gave me much to think about (in a good way) In all honesty, the freeway guides made it easy and fun. I think you can get a copy at freewayguides . com