Let’s start with the good news. We’re all living longer.
If you’re a man who turns 65 today, there’s a 50 percent chance you’ll live beyond the age of 87. If you’re a woman, there’s a 50 percent chance you’ll live beyond the age of 90.1
Great news, right? But the challenge of living longer is making sure your money lasts as long as you do. It’s up to you to have a plan that turns your savings into the income you’ll need in retirement. You’ll want to be sure you have enough guaranteed income to cover fixed expenses—like housing, food and health care—for as long as you live.
What’s guaranteed income? Sources of income such as a pension, Social Security or income annuities.
Income annuities are contracts with an insurance company that allow you to convert a portion of your retirement savings—like a 401(k) or IRA—into a steady stream of income. The insurance company then promises you guaranteed income for your lifetime. You’ll know in advance exactly how much you’ll receive. And the amount will never go down, regardless of what happens in the market and regardless of how long you live, even if you live to be 110 or older.
So if you want predictable, stable income that you can count on, an income annuity can help you feel confident that in retirement your money will last as long as you do.
Keep in mind … annuities are backed solely by insurance companies. So when considering an annuity, be sure to choose a company that’s been awarded the highest financial strength ratings … one that will be there when you need it most.
1Annuity 2000 table with mortality enhancements determined using projection scale G2