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  • 4-Minute Article
  • |
  • Sep 21, 2020

Preparing for Retirement Longevity With Guaranteed Lifetime Income

Guaranteed income sources can help support your retirement lifestyle.

Preparing for Retirement Longevity With Guaranteed Income
Questions this infographic can help you answer:
  • Can annuities be a good investment?
  • Why should I consider purchasing an annuity?
  • How can I supplement my retirement income?

No matter what your desired retirement lifestyle is, it’s important to have reliable and steady income to support it for however long it lasts. With the average retirement now stretching over two decades,1 it’s a good idea to prepare for rising healthcare costs and other essential and discretionary expenses.

Due to costs associated with living longer and the unpredictability of the stock market, many people are considering guaranteed income sources like an annuity that offer the benefit of regular payments in retirement. An annuity is designed to provide you with income that you can’t outlive, and it can also provide benefits like protection from market volatility and death benefit for beneficiaries should you pass away.

 

The Need for Lifetime Income
 

As life expectancies have increased, the financial impact of longevity has made guaranteed lifetime income an important consideration for retirees who want to secure their financial future.

 Life Expectancies Have Increased Amongst 65 Year Olds.

 

Part of a Balanced Retirement Income Solution
 

Many investors use annuities as a way to supplement other sources of retirement income, such as Social Security or their savings.

Guaranteed Lifetime Income like Annuity as a Part of Broader Portfolio Strategy

On average, guaranteed lifetime income annuities provide $7,800 to $10,800 annually in supplemental retirement income.4

Estimated Annual Guaranteed Income Payments Received by Annuity Owners in 2018

Annuities on the Rise
 

The amount of money invested in annuities has increased 18.8% since 2017.5 Statistics show that those at or near retirement age who have a deeper understanding of annuities also have a higher interest in purchasing them.

70% of Consumers are Interested in Guaranteed Income Annuity

Retired annuity owners have invested around 25% of their investable assets in annuities.6 Among the most purchased annuities in 2019 were fixed-index annuities, which offer purchasers a chance to grow their purchase payment by participating in market growth while also providing protection against market downturns.

Total Annuity Sales in 2019

Whether you’re already retired or it’s still a few years away, it may be a good idea to consider what sources of guaranteed income you have in your portfolio today. With an immediate annuity, you can start receiving a steady stream of income now, while a deferred annuity offers with the benefit of predictable, guaranteed income in the future.

Satisfaction, Recommendation, and Confidence
 

More than three-quarters of people who receive guaranteed lifetime income from an annuity would recommend purchasing one for the positive effect it has on their financial confidence and budget. Some people who own guaranteed lifetime income annuities list the following benefits:3

People Who Receive Guaranteed Lifetime Income From an Annuity Would Recommend Purchasing It

Overall, it has been shown that retirees who own an annuity are more confident that their savings and investments will last through their retirement.4

Use our Annuity Income Calculator  to determine whether your essential expenses will be covered during retirement. Then talk to your financial professional to discover the role an annuity could play in your retirement income plan.