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According to statistics from the Social Security Administration, the population of Americans age 65 and older is expected to increase by 35 percent by the year 2040 while the working age demographic is projected to decrease by at least 6 percent during that same time frame. Though the Administration anticipates a complete lack of funding for Social Security by that time, plans are in place to either raise the retirement age or lower the benefits retirees are eligible to receive in order to compensate. Regardless of the route chosen, this enigma negatively impacts those who will reach retirement age during the foreseeable future.Many individuals hoping to create a supplement for their Social Security income during retirement once relied largely on pension pension plans; however, employers seem to be phasing out those as well. After turning to 401k's as what seemed to be a final resort, a number of investors took a large hit in the face of recent economic recession, some losing up to 50 percent of the funds they invested. In an effort to assist pending retirees in securing their financial future, Resource4Retirement has launched a campaign to raise awareness of the advantages of annuities as an investment option.
Bill Jenkins of Resource4Retirement explained, "We feel annuities are an overlooked resource when it comes to planning ahead for retirement. This is largely due to the fact that many people simply do not understand them. The most beneficial aspect annuities is the fact that they offer a lifetime income, meaning those taking advantage of this option can receive payouts for the duration of their lifetime. There are several different types of annuities available for investors to choose from, and they can be customized to meet each individual's needs."
According to the company's website, immediate annuities are typically chosen by those who need instant income. Often funded by a lump sum, such as an IRA rollover, these are designed to provide payouts at intervals chosen by the investor and begin within one interval of being initiated. Jenkins noted those planning for a financially stable future would benefit more from a deferred annuity. This type of annuity consists of 2 phases, an accumulation period and a payout period. During the accumulation period, investors are able to deposit funds into the annuity without being forced to pay taxes on the accruing amount. The annuity is only taxable once they begin receiving income during the payout period.
Indexed annuities are another advantageous option mentioned by Resource4Retirement. Jenkins recommended only using these for long term investments, as early withdrawals may result in forfeiture of a large portion of the earning from such annuities. They are generally used as alternatives to mutual funds or as a component of a well rounded savings plan. Insurance company participation rates can negatively affect the profits with an indexed annuity.
Concluded Jenkins, "As is the case with any financial opportunity, there are both positive and negative aspects of annuities, and not all annuities fit the needs of all investors. Professional financial advice is vital before making any decisions regarding which annuity is appropriate for an individual's future. Though the growth of an annuity may be considered low when compared to some other options, these are guaranteed sources of income regardless of the state of the market."
About Resource4Retirement:
Resource4Retirement is a website dedicated to providing information regarding financial planning for retirement. They offer comparisons of various financial opportunities as well as advice from professional financial consultants.
Contact Info:
Name: Bill Jenkins
Email: Send Email
Organization: Resource4Retirement
Phone: 855-371-0328
Website: http://www.resource4retirement.com
Release ID: 24489
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