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retirement planning for age

The number of Americans aged 90 and older almost tripled between 1980 and 2010 and is expected to quadruple by 2050.1

Without a source of guaranteed income, it might be difficult to estimate how much to withdraw each month from your retirement nest egg. Withdraw too much and you risk running out of money in your lifetime. Withdraw too little and you may live on a more limited budget than necessary, missing out on some of the experiences you have looked forward to enjoying in retirement.

Annuity payouts can be retirement income solution. In fact, annuity payouts can be structured to continue throughout the lifetime of a second individual, thereby providing income for a surviving spouse (as long as the contract remains in force). Knowing today’s census data, this may be especially important for women, who often are younger than their spouses and typically live longer than men.3–4 According to US Census Bureau, more than 84% of women who live to age 90 and older are widows.5

Premiums for a fixed annuity can be paid in a lump sum or a series of payments. If the insured dies before annuity payouts begin, the insurer will generally keep the premiums that were paid. You should be aware that money put into a fixed annuity does not have the opportunity to pursue potentially higher growth rates in the financial markets. And inflation could reduce the future purchasing power of the annuity payouts.

A fixed annuity is an insurance-based contract. Any guarantees are contingent on the claims-paying ability of the issuing insurance company. Generally, annuities have contract limitations, fees, and expenses. Most annuities have surrender charges that are assessed during the early years of the contract if the annuity is surrendered. Withdrawals of annuity earnings are taxed as ordinary income. Early withdrawals prior to age 59½ may be subject to a 10% federal income tax penalty.

Sources
(1, 3, 5) U.S. Census Bureau, 2011
2) usnews.com, May 25, 2011
4) National Vital Statistics Reports, Vol. 59, No. 9, September 28, 2011

Call The Host of Radio Show- CBS Sports Radio 1580AM, Freeman Owen Jr I specialize in retirement planning strategies. Let me help you determine the best way to plan for retirement and keep your money safe so you can enjoy the retirement lifestyle you always dreamed about. My consultation is free so call (866) 471 7233.