No one has to tell you that it is a new, anxious world for retirees. Pensions are nearly non-existent. People have not been able to save as much money as they will need. The economy is far from stable. Social Security seems under constant strain.
What Will Tomorrow Bring?
No one can accurately answer that question. That is why more Americans are turning to annuities to control their destinies. Annuities are a guaranteed source of income that you own and no one can take away.
That stability in times of crisis and need is what attracted many former critics to embrace annuities as part of a firm foundation for a secure retirement.
Harold Evensky, professor of financial planning at Texas Tech University, is one such former critic. He was dubbed the “Dean of Financial Planning” by Don Phillips, CEO of Morningstar, and is viewed as one of the top fee-only financial planners in the country.
Evensky now says annuities can be the key to help solve retirement’s greatest riddle: How do 76 million baby boomers pay for retirement?
An analysis by the Government Accountability Office finds that among households with members aged 55 or older, nearly 29 percent have no retirement savings or a traditional pension plan.
Millions of others are woefully short of retirement funds. Annuities are a valuable resource to help stretch dollars, Evensky said.
“I think that (annuities) are going to be an extremely important part of the investment and planning portfolio over the next decade or so,” he said.
An annuity is an insurance contract and like any contract it can be confusing. Terms and fees vary from annuity to annuity. People looking to save for retirement have to determine if the terms of an annuity or any contract are what they need and if the expenses are reasonable.
The most important thing is to have all of the information to see if annuities fit in your plan. Because the simple reality is that the retirement formula has changed. The era of combining pensions with Social Security is over for many people.
More information about Annuities will come next week. Stay tuned.