Information courtesy of USAA Life Insurance Company and USAA Life Insurance Company of New York
There are many retirement risks. Luckily, there's a pillar you can add to your retirement and wealth management plan to help reduce some risks: an income annuity.
Income annuities – also referred to as immediate annuities, help provide a simple and reliable solution to retirement income needs.
Guarantee your retirement income.
Years ago, many retirees relied on a pension as their income stream. Today, many employers have eliminated pension plans. More people are responsible for creating their own retirement income. An income annuity provides a guaranteed income See note 1 stream in retirement that can help you meet expenses and maintain your standard of living.
Make your money last.
One of the most common retirement risks is longevity risk, or the risk of outliving your money. Advances in medical care are increasing life expectancies. Many people will live 20 or more years after they retire. Retirees often fear running out of retirement money, and they vastly underspend. An income annuity can provide you the freedom to spend the income generated without worry.
Retire with peace of mind no matter the market.
Annuities are not the same as investments. Income annuity payments are not correlated to market performance. Having an income annuity payment stream may reduce the risk of retiring during a down market.
Keep it simple.
An income annuity is simple to maintain. Market investments require balancing withdrawals with ever-changing stock market conditions. Alleviate the stress associated with having to draw down your retirement savings or limit your spending in retirement when stock markets are down with an income annuity.
Protect your income.
Income annuities are insurance products and have no relation to investments or the markets, protecting you from volatility. An income annuity may also provide limited protection against fraud, since the money you used to purchase the income annuity is no longer available to fraudsters.
While income annuities can serve a vital role for generating retirement income, keep in mind that before making a long-term commitment you need to do your homework. You should understand the terms of the contract with your annuity provider. This includes what is guaranteed, when payments start, length of payments, who else gets paid and under what terms, other withdrawal options, and taxation. Since your retirement plan depends on your unique circumstances, seek help when needed.
Let us help you review your financial plans and find the best way to reach your retirement goals. Call us at 800-531-3392.
Check out our annuity calculator See note 2
Use our calculator to see what monthly income you could get from an immediate annuity.