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

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

Use Guaranteed Income from Annuities to Ease Retirement Concerns


You have no control over market volatility, no matter how much you try to plan for it. Earlier this summer, in a situation now known as Brexit, the United Kingdom left the European Union. This has really effected the markets and put a lot of retirees on edge. The only way that you can account for market volatility without the anxiety of constantly worrying about your money is to have a source, or multiple sources, of guaranteed retirement income. In “Guaranteed income: The antidote to market volatility,” Ralph Grauso says that building up your sources of retirement income will help you ease your worries about the future.

Social Security is typically the largest source of retirement income for most Americans. The amount of income you will receive depends on a few factors, most importantly the age that you choose to start receiving payments. You can start receiving income payments at age 62, but it usually pays to wait longer than that. Payments must be taken by age 70, but they increase with every year you wait between 62 and 70. If you take payments earlier and therefore, reduce your benefit, that will also reduce your spouse’s survivor benefit in the future.

The second source of retirement income that some Americans have is from a company pension. Pension income has been a big source of retirement funds throughout history, but not nearly as many Americans receive company pensions now as they did decades ago. Even if you do have a pension, some recent changes have made these less dependable. Some companies have exposed their pension funds to high risk and others have drastically cut the benefits their retirees receive. A lot of Americans with pensions are starting to save money elsewhere because of the volatility of company pensions.

With the uncertainty of pension funds and even with Social Security benefits, there is a greater need for annuities than ever before. Annuity products are also important for Americans who don’t have any pension income from their employer. An annuity is bought from an insurance company who then pays you monthly retirement income for a certain time frame or over the rest of your lifetime. It is the only way to create your own personal pension and guarantee a future free from the worry of running out of money. The article explains both immediate and deferred annuities. An immediate annuity starts to pay you income soon after making your lump sum payment to the insurance company. One of the main benefits of immediate annuities is that you are guaranteed lifetime income without having to worry at all about market volatility. A deferred annuity has an accumulation phase and a distribution phase. You earn interest during the first phase and then annuitize your account during the second phase when you are receiving income. Any gains are tax-deferred until you start receiving your income payments. Another benefit of buying a deferred annuity is that you don’t always have to purchase it with a lump sum of money. Some insurers allow you to make installment payments over time. Regardless of the type of annuity you purchase, they can pay you guaranteed lifetime income.

Use the guaranteed lifetime income from annuities, Social Security, or a pension to account for market volatility in retirement and ease your worry about finances in the future.

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).