After years of putting hard work into your career, you’ve earned a break and the time to focus on things that make you happy. During your retirement years, the last thing you should be worrying about is having enough income to survive. As longevity increases and retirement years last longer, unfortunately, more and more retirees find this concern to be a reality.
To avoid added stress during retirement, consider planning for guaranteed income. Similar to a company pension, a benefit that is disappearing for today’s workers, guaranteed income is a fixed and structured amount of income that is designed to last a long period of time, even a lifetime. One way to secure a guaranteed income is by using an annuity. An annuity is a popular strategy for a portion of your retirement assets. Backed by an insurance company, in its most simple form an annuity is insurance against running out of money in your lifetime.
Some annuities allow you to name a joint income recipient, so you and your spouse can receive a guaranteed lifetime income. This isn’t the only benefit that comes along with this type of strategy. The following are five benefits that help you live a happier retirement.
Not Hurt By Market Volatility
Market swings can wreak havoc on a retirement portfolio if not properly allocated. This can be uneasy for those entering retirement, as it could make the amount of income you withdraw unpredictable. However, by incorporating a guaranteed income strategy, your income itself doesn’t have to suffer when markets shift against your favor.
Never have to worry about outliving savings
It can be hard to predict how long your retirement will last. It is more common today to come across retirees who reach more than 100 years old in age! This being said, many retirees worry about their money lasting multiple decades, let alone being able to leave a legacy behind for family. However, just like social security and pensions, retirees like knowing their income will be consistent — that it will not go down and will not run out.
Proven Health Benefits
In a study published by the Wall Street Journal, it was found that retirees who had a predictable check every month, lived a happier and longer life! Research has found that stress is a factor in a myriad of health issues — when you eliminate worrying where your next income check is coming from to pay bills or to enjoy your next family vacation, there is a huge value to that.
Allow for better control over financial spending
With guaranteed income, you feel assured that every month you will receive a check with a fixed amount. When you know what your fixed expenses are, and you have a budget for the things you want to enjoy, it’s much simpler to create a strategy that will allow you to achieve this — rather than leave yourself guessing or worrying every year how you will pay for these things.
One of the biggest benefits to guaranteed income is having a lifetime of cash flow. Many annuitants receive their income on a monthly basis, making cash flow in retirement simple and predictable. You can’t put a price on peace of mind!
To learn how you can safeguard your finances from unexpected hardships, you can contact Adam at AdamTau.com
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