Estimated read time: 4-5 minutes
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
[SU] SCZ SVY
TO BUSINESS EDITORS:
Latest Surveys Reveal Millions of Americans at Risk of Underestimating
Retirement Income Needs, Outliving Their Retirement Savings
MEDFORD, Ore., March 4, 2014 /PRNewswire/ -- Many of the best-laid
retirement savings plans fail to account for a basic statistical
reality: half of Americans will live beyond their age group's life
expectancy. With this in mind, the need for an option that includes
lifetime guaranteed income becomes clear. Ken Nuss of AnnuityAdvantage
believes that immediate annuities along with fixed annuity income
riders provide just that kind of security.
For the 55-year-old with $500,000 saved toward his or her golden
years, feelings of overconfidence are to be expected. However, the
fact remains that many near-retirees are grossly underestimating their
retirement income needs, and three-quarters don't know if their
current plan includes lifetime income benefits. As more Americans opt
for early retirement, the potential for serious financial disaster
A recent Genworth survey confirmed that many adults were
miscalculating their retirement income needs. Experts concur that
workers should be saving at least 10% of their annual income for
retirement every year. However, only about half of American adults are
doing this; even worse, 1 in 5 are saving nothing at all. In the same
vein, retirement income should total about 70 to 90% of pre-retirement
income, but two-thirds of Americans believe that anything from 25 to
75% will suffice.
This disconnect between theoretical plans and practical reality is
troubling: 65% of retirees report higher expenses than during their
working years, thanks in large part to rising healthcare costs. Anyone
planning to subsist on half of his or her working income may be in for
an unpleasant surprise.
Incremental withdrawal from savings accounts or mutual funds is simply
not a feasible option for most retirees. More than half of those who
start down this path will exhaust their savings before they die. In
sum, as many as 43% of early baby boomers are likely to run out of
money during retirement. This begs the question: what can they do
right now to safeguard their future and avoid burdening their grown
AnnuityAdvantage, an independent national marketer of industry-leading
fixed annuity products, is working to avert this looming disaster for
millions of retirees who may outlive their retirement savings. Many of
the company's annuity product offerings feature guaranteed lifetime
Social Security and pension plans are typically the only options
outside of annuities with guaranteed lifetime income potential;
however, these usually limit contributions and don't offer the same
payout customization potential. Fixed and immediate annuities
represent the best of everything - no imposed contribution limits,
lifetime income guarantees and the ability to fully customize payment
terms to meet individual needs.
Among the standard payment term options with immediate annuities,
several offer the security of a lifetime guarantee. The single life
only option provides payments that never run out during your lifetime,
but there is no survivor benefit, and payments cease at death.
Alternatively, the life with period certain option ensures
beneficiaries have some protection against early death. Choosing a
life with ten-year certain option, for instance, would provide five
additional years of payments to a beneficiary should the annuitant die
five years into the term.
Retirees and near-retirees interested in comparing fixed annuities can
browse AnnuityAdvantage.com for a list of top products curated by
Founded in 1999 by veteran financial and retirement planner Ken Nuss,
AnnuityAdvantage.com is the leading online provider of fixed-rate,
equity-indexed, and immediate income annuities. Consumers planning for
retirement have come to rely on AnnuityAdvantage.com for
individualized, expert recommendations and guaranteed, high-value
annuity products that have been thoroughly screened by Nuss and his
staff. The company's client-centered approach allows consumers to find
the best mix of annuity products for their unique needs from the
hundreds of annuities available through AnnuityAdvantage.com. There
are no fees for the service.
Nuss is an active member of the National Association of Insurance and
Financial Advisors (NAIFA), the National Association for Fixed
Annuities (NAFA), and the National Ethics Association (NEA). He holds
an Oregon insurance consulting license, along with an individual
producer license in all 50 states and the District of Columbia.
Learn more at http://www.annuityadvantage.com or call 800-239-0356.
Read more news from AnnuityAdvantage.
/CONTACT: Ken Nuss, email@example.com
/Web Site: http://www.annuityadvantage.com
SU: SCZ SVY
-- PH75699 --
0000 03/04/2014 13:30:00 EDT http://www.prnewswire.com
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.