Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Annuities Help With Two Major Retirement Concerns


One of the top retirement concerns right now is running out of money during your retirement. Purchasing an annuity product with some of your retirement savings can help ensure that those savings last for as long as you live. Annuities can also protect against another concern, declining cognitive ability in old age. The Motley Fool’s Selena Maranjian recently wrote the article “Don’t Want to Go Broke in Retirement? Annuities Can Help” about the benefits of using annuities in retirement income planning. Annuities pay you a steady stream of lifetime income, simplify your overall finances and help protect money mismanagement as you get older.

An annuity is a contract with an insurance company to pay them a lump sum of money in exchange for payments that last for a fixed term, your lifetime, or you and a spouse’s lifetime. You can start receiving payments immediately or defer them for a period of time. Annuities can pay fixed or variable payouts. This Motley Fool article focuses solely on traditional fixed annuities because they are simpler and often fit more people’s retirement income planning needs. Average social security payments of $16,000 per year are just not enough money for you to live a comfortable retirement. You need other sources of income, which typically should include an annuity if you don’t have a hefty company pension. Your annuity payments are based upon your age, life expectancy, interest rates and other factors. Depending on your original purchase amount, you can get as much yearly additional income as you need from an annuity product.

The lifetime income aspect of annuities is not only beneficial for the actual income, but also because you don’t have to make any more decisions about that money. While some people like managing their money and transferring to different financial accounts, as you age this can become more difficult or even impossible. Finance and math skills are among the first cognitive abilities to decline as we get older. Annuities can help you rest assured that your income will continue flowing in regardless of what happens in the markets or with your mental abilities. Financial decision-making is at its best at age 53, according to the Center for Retirement Research at Boston College. Even though that skill declines, most people are still confident in their financial decision-making ability which can cause big problems. Annuities help protect against declining cognition in old age in addition to providing lifetime income to help ensure a comfortable retirement.

Written by Rachel Summit

Follow Rachel, aka Finance Mama, on Twitter and Google+

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).