Retirement is a phase of life that many look forward to, but it also brings with it concerns about financial stability and longevity. A recent national poll conducted by Kiplinger and Athene highlights key insights into how annuities can play a significant role in alleviating these concerns.
Understanding Annuities
An annuity is a contract with an insurance company that provides a steady income stream. This income can last for a specified period or for the rest of the annuitant’s life. Annuities come in various forms, including fixed, variable, and indexed, each offering different levels of risk and reward.
Key Findings from the Kiplinger-Athene Poll
The Kiplinger-Athene national public opinion poll surveyed 818 respondents aged 50 and older, with a minimum net worth of $100,000. The poll revealed that retirees with annuity income are generally more satisfied and confident in their financial future compared to those without an annuity.
- Confidence in Financial Security: 74% of retirees with annuity income feel confident they will have enough income to live comfortably in retirement, compared to 62% of those without annuity income.
- Managing Expenses: 68% of those with annuity income are confident they won’t run out of money, versus 59% without.
- Lifestyle Satisfaction: 88% of annuity holders are more likely to splurge on things they want, and 87% spend time doing things they enjoy, compared to 78% and 75% of those without annuities, respectively.
Benefits of Annuities
- Guaranteed Income: Annuities provide a reliable income stream, which can help cover essential expenses and reduce the stress of managing finances.
- Inflation Protection: Some annuities offer inflation protection, ensuring that your purchasing power remains intact over time.
- Legacy Planning: Annuities can be structured to provide for your loved ones, offering peace of mind that they will be taken care of.
Addressing Common Concerns
The poll also highlighted that pre-retirees are more concerned about economic issues such as inflation, market volatility, and the financial strength of Social Security and Medicare. Annuities can address these concerns by offering a stable income that isn’t directly affected by market fluctuations.
Misconceptions about Annuities
Misconceptions
Facts
Don’t put your money into an annuity
account, they’re bad.
There are many different types of annuity contracts out there. When annuities are customized to the client for the right reasons and for their specific needs, they can be a wonderful piece of your retirement portfolio.
You do not have access to your money once you purchase an annuity.
This is the case with some annuities, but not all. There are many annuity contracts out there that allow you to have access to your money.
When you purchase an annuity, you turn your money over to the insurance company, and if you pass away, the contract annuitizes, and the insurance company keeps the money
This is how many old annuity contracts worked. There are plenty of great annuity contracts out there today that do not annuitize. There are death benefits that allow the remaining balance in the account to go directly to your beneficiary probate free!
Misconceptions about Annuities
It’s important to understand your risk tolerance and financial needs before choosing an annuity. Consulting with your retirement specialist can help you select the right type of annuity that aligns with your retirement goals. At Key Retirement Solutions, we believe that incorporating annuities into your retirement plan can provide the financial security and peace of mind needed to enjoy your golden years.
Contact us today to learn more about how annuities can benefit you!
