Latest Surveys Reveal Millions of Americans at Risk of Underestimating Retirement Income Needs, Outliving Their Retirement Savings

By The Associated Press | Posted - Mar. 4, 2014 at 6:31 a.m.



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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

grows.

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

children?

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

payment options.

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

industry specialists.

About AnnuityAdvantage.com

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.

SOURCE AnnuityAdvantage.com

-0- 03/04/2014

/CONTACT: Ken Nuss, info@annuityadvantage.com

/Web Site: http://www.annuityadvantage.com

CO: AnnuityAdvantage.com

ST: Oregon

IN: FIN

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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.

The Associated Press

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