Boomer's - Are You Ready For Retirement?
-Robert Holt, January 2010
We all have our own ideas of what retirement will look like. Close your eyes and imagine your hard-earned money working for you and providing you the retirement of which you have been dreaming.
The advantages and disadvantages of belonging to the Baby-Boomer generation are numerous. On one side - you’re expected to live longer, the longest out of any previous generation. On the flip side - you’re expected to live longer! This means having to save a lot more to live the lifestyle you’re expecting after you stop working.
One option to consider for providing guaranteed retirement income is an immediate annuity. Before buying any annuity, there are several questions that are smart for you to ask.
1. Is this annuity life contingent? In other words, does it terminate upon the death of its annuitant? If so, the payments will stop when you die. How will this affect your spouse?
2. Is this annuity 100% joint and survivor? If so, the payments continue for as long as either of the two annuitants - typically spouses - are alive. This option protects the surviving spouse. If you calculate your life expectancy, you may be surprised by how many years your spouse is expected to outlive you. A 100% joint and survivor annuity provides income security for life, regardless of who dies first.
3. Does this annuity include a number of certain payments? A number of certain payments may be guaranteed in a life income annuity. This means your annuity will continue to pay a certain number of payments to a designated beneficiary or your estate, even if you die. For example, if you choose a life income option with payments guaranteed for 15 years and you die after year ten, your beneficiary will receive five more years of income. The cost of this guarantee, a reduction of income when compared to a life income with no guarantee, is often quite small.
4. Is there a guaranteed minimum payment? Annuities offering guaranteed minimum payments promise that they will pay a fixed minimum amount - usually the initial amount invested in the annuity - even if the annuitants, or joint annuitants, die. The cost for this guarantee is generally minimal.
It’s often a good idea to research the financial stability of any company that offers annuity contracts. A guarantee of income for life means little if the company making the guarantee folds.
Navy Mutual’s annuity plans, based on our strong and steady portfolio, offer the added benefit of no surrender fees, charges, or loads. When you retire, you can depend on Navy Mutual to provide safe, secure, and steady income. Call 800-628-6011 and speak to one of our representatives today.
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