At Annuity FYI, we frequently get phone calls from investors and financial advisors alike asking us if folks over the age of 85 should be investing in annuities, and if so, which products are available to those investors. In this tutorial, we will look at the appropriateness of fixed, immediate, and variable annuities for investors 85+ with four typical goals in mind: providing income, capital preservation, capital appreciation, and protecting the investment for heirs.
For the sake of comparison, we will use an 85-year-old male investing $100,000. According to the Center for Disease Control, such a person will live, on average, an additional 6.5 years, to 91.5 years of age. But remember, this tutorial is for the sake of comparison and education only – every investor is different, which is why you should speak with a financial advisor who specializes in annuities before making an investment decision. In particular, you must make sure that any surrender penalties that come with many annuities will not interfere with your income needs. If you don’t know of an advisor who specializes in annuities, Ask Annuity FYI or Find an Annuity FYI Affiliate in your area.
Read on to find out exactly what types of annuities are right for investors over 85, whether they’re suitable for you, and if so, how to find one that best fits you and your financial situation.