Although pensions may be a thing of the past, the concept of a qualified retirement benefit that pays a guaranteed monthly amount for life is not. Instead of a company pension, they now take the form of self-funded fixed annuities.
It is a well-known fact that Americans are living longer. Consequently, they are spending more time in retirement, with the average American enjoying 20 years of life after work. How does one prepare for all these years and make sure their nest egg will adequately cover this time? The answer may lie in fixed annuities. This safe and risk-free option can help provide you or your loved one with a comfortable retirement.
Earnings from the annuity grow on a tax-deferred basis. This means you don't have to pay taxes on the earnings until you withdraw them, allowing your money to work for you without being taxed each year.
According to financial planners, you will need to replace 70% to 90% of your pre-retirement income to maintain your current standard of living. Therefore, if you earn $70,000 a year before retirement, you will need to set aside $49,000 to $63,000 for each retired year. Be aware that you also need to account for the impact of inflation in your retirement planning.
It is best to discuss annuities with a licensed financial services professional. At WFGInsuranceQuotes.com we can help you find a plan that fits your individual needs, and will assist you in planning for a comfortable retirement, making all those years of hard work pay off. Contact us today.
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