Have you started to doubt the durability of retirement income lasting for as long as you need it to? Unfortunately, these types of fears are becoming much more common – particularly if you are among the millions of Baby Boomers who have just retired, or are planning to retire in the next few years.
Unlike your grandparents and parents, it is probable that you won’t have an employer-sponsored pension income to fall back on. Plus, another key income source in retirement – Social Security – may not be quite as robust as you had hoped.
In fact, according to the Social Security Administration, this income source only replaces, on average, about 40% of pre-retirement earnings. And, if you are considered a high wage earner, this replacement percentage can drop drastically.
Is Your Retirement Strategy Asset or Income-Based?
One of the biggest misconceptions about saving for retirement – and one that Wall Street has fueled for many years – is that simply gathering and growing assets will lead you to the “promised land” of a successful retirement.
This, however, is not necessarily the case.
While you may get some nice tax advantages when you contribute to an employer-sponsored 401(k) plan, these types of accounts are based primarily on assets and returns, as versus generating a future income stream in retirement (which is essentially what most investors are actually stashing away assets for). So, relying on your 401(k) plan to get you through your retirement years can really be a risky proposition.
In fact, according to the Harvard Business Review, “the seeds of the coming pension crisis lie in the fact that investment decisions are being made with a misguided view of risk.” The Review further states that, “The move to saver-managed defined contribution plans – most notably 401(k)s – has increased the likelihood of a pension crisis down the line as the Baby Boomers retire.”
So, it’s no wonder why so many investors are leery about whether or not their money will last – especially because your income may very well be needed for two or more decades after you’ve left the world of employment.
How to NOT Run Out of Money in Retirement
Retirement planning today is much different than it was a few decades ago. With so many individuals having to rely on their own savings and investments for some – or even all – of their retirement income, it is more important than ever to make the right decisions when constructing an income plan.
That’s where we come in!
At Annuity Gator, our mission is to help retirees and pre-retirees understand the options they have for ensuring an ongoing retirement income stream – and one of the foundations of a steady future income should ideally include an annuity.
Our annuity review database is packed full of in-depth information that you can use for determining whether or not an annuity is right for you, and if so, which type of annuity is best for your specific financial objectives.
We also have annuity experts available who can answer any of the questions you have about annuities – including running comparisons of different annuities that you may be considering adding to your portfolio.