Annuity FYI Blog

According to a recent survey, investors are quite uncertain with the retirement issues surrounding them and could use more help from advisors.  Danielle Andrus of Advisor One says that many people are not happy with the support offered from their employer’s retirement plan in her article “Unsatisfied and Uncertain–Investors Need Advisors’ Help: Retirement Report Roundup.”  Cogent Research’s study of investors found that more than half were unhappy with their current situation and need advisors’ help transferring 401k annuities and other retirement savings plans.  Those who are happy with their current employer plans are three times more likely to roll their money over with the same company holding their 401k or 403b plans.  Investors were most satisfied with Fidelity, Wells Fargo, Vanguard, Merrill Lynch, and Charles Schwab.

LIMRA research has found that half of pre-retirees have not even considered the possibility of outliving their income.  Fewer than one third of those set to retire in the next three years actually have a written retirement plan in place.  Advisors will be able to help pre-retirees and retirees make decisions to carry their savings throughout their lifetime.  Annuities with guaranteed living benefits have been increasing steadily and were up 8% in 2010.  With $81 billion in sales of annuities with guaranteed living benefits in 2010, the total assets of variable annuities carrying that rider went to $521 billion during the fourth quarter of last year.  New annuities with these riders were introduced in 2010 by Hartford, Principle, and Protective.  Our experts can help you with 401k annuities and guaranteed living benefit riders that will make your money last over your lifetime.

Many retirees right now are spending their money too quickly, according to The Wall Street Journal’s “Will Your Savings Run Out in Retirement?”  Anne Tergesen’s article offers suggestions to find out how much money you can spend each year without depleting your nest egg too soon.  Fidelity Investments touts annuity products as a good way to bridge the gap between social security, 401k’s and other retirement income.  Since many retirees are wary of hiring a financial advisor even though they are concerned about their retirement finances, some top companies are offering free or low-cost services to help you get your finances in order.

One of the most accessible services is Fidelity’s Income Strategy Evaluator.  You can find information on their website, at any branch, or through a toll-free phone number.  They offer advice on avoiding the longevity risk by estimating how much money you can spend each year without depleting your savings.  Whether you need information on a 401k annuity transfer or the best immediate annuities to carry your savings through retirement, Fidelity Investments has someone to assist you.  Charles Schwab Corp. offers their clients a Retirement Planning Consultation.  Companies like T. Rowe Price, Financial Engines Inc., and Morningstar, Inc. all have information to offer 401k and other retirement plan members.  There is advice out there for everyone.

On The Huffington Post, Dan Solin writes that immediate annuities are a less publicized yet suitable investment for retirees or those about to retire. He cites evidence that people who invest in an immediate annuity as part of their retirement portfolio are less likely to outlive their savings, a big concern for baby boomers.

Several companies offer immediate annuities, including:

• Vanguard
• Fidelity
• Charles Schwab
• TIAA-CREF