Our lives have been turned upside down during the last few months because of the COVID-19 pandemic. The shock of losing their jobs has affected 40 million Americans and counting. What about retirees? What kind of recourse is there to fall back on? Turns out right now is a great time to look into annuities and secure your financial future.
As minor retirement expenses accumulate, you have to consider the bigger picture. Will your nest egg last through your entire lifetime? On average, most Americans retire by the age of 62, which means many retirees must cover living expenses for around 17 years. An annuity is a long-term investment that you purchase from your insurance company. They are explicitly designed to protect you from outliving your income. For many senior citizens or people over 50, annuities are an integral part of a successful financial retirement portfolio. Annuities help build tax-deferred savings to cover retirement costs like living expenses and healthcare.
Specific annuity benefits can be tailored for individuals over 50. These benefits include receiving guaranteed payments, delaying Social Security, and covering the cost of increasing medical expenses. In choosing the right financial product for your needs, you can better provide for the health and well-being of yourself and your family. Plan by purchasing an annuity that provides periodic payments, which may cover changes in your living costs and provide you with a buffer during the golden years.
Adjusting to life without steady paychecks is difficult. You'll have extra time to fill and, for many, limited resources to enjoy spending on entertainment and luxuries. Maintaining your previous lifestyle while managing ever-rising medical costs and depending on Social Security benefits and savings can become a stressful balancing act. This sort of financial strain requires rigorous budgeting and a close eye on every penny spent.
Owning an annuity helps eliminate the anxiety and fear of outliving your resources and arms you with a long-term success plan. Because annuities often include the guarantee of lifetime payments— once purchased, it can also bring about more sound sleep, significantly decreased stress, and carefree days filled with the joy of grandchildren and golf.
Life will eventually get back to normal. Right now, peace of mind of financial security can go a long way to help calm anxiety about the economy.
For more information on how an annuity can help your future, contact the financial experts at West Financial Group today!