In a U.S. Government Accountability Office (GAO) report, Ensuring Income Throughout Retirement Requires Difficult Choices, financial experts recommend buying an immediate annuity to supplement your retirement income. While Social Security continues to be the primary source of fixed income in retirement, it fails to meet all of the financial needs of retirees. Other contributing factors in the growing importance of income annuities include:
- The shift from employer-sponsored defined benefit pension plans to defined contribution plans
- Increasing life expectancies
- Retirees are being forced to assume more responsibility for managing their savings to ensure that they have sufficient income throughout retirement
An income annuity is a wonderful alternative to self-managing savings, offering a steady source of income that retirees will not outlive. Other benefits of income annuities include:
- Help protect retirees against the risk of underperforming investments
- Help protect retirees against the risk of outliving their savings (longevity risk)
- Help relieve retirees of the task of managing their investments at older ages when their capacity to do so may be diminished, and
- Provide a base of guaranteed income that may serve as a dependable “cushion” for retirees
Still, income annuities are not for everyone. Consult a financial adviser to find out if an immediate annuity makes sense for you.
If you have any questions about what you have just read, or if you would like to know more about annuities and retirement planning, consult the financial advisors at Safe Retirement Solutions by calling 877-268-4086 or visit our website today!
We help our clients in all phases of their retirement planning. We help them prepare for a retirement free from financial worries, so that they can enjoy their retirement years. We help to enable our retired clients with the transition of their wealth into a carefree income that will last them a lifetime.
GAO Report Suggests Annuities as Retirement Income Option