Will You Have Enough Retirement Income?

​Did you know that the average person retiring today can expect to live 20 or 30 years after their career ends? Life expectancy has increased dramatically over the past century, and gone are the days when retirees only needed to plan for about a decade of retirement income.
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You may already know this, and that's why you are following a carefully scripted plan to save for the future. You're making contributions to your retirement account at work, and paying down debt as you approach the end of your career. You've researched Social Security and know what to expect from the program. You may even be considering a second, part-time career in retirement.

But no matter how carefully you plan, it's possible that inflation, the rising cost of healthcare, and other factors will cause you to feel significantly underwhelmed once you retire. Many retirees report that their budgets simply do not stretch as far as they had expected.

If you want to ward off feelings of disappointment in retirement, there are ways to ensure a lifelong stream of income.
In the past, annuities were less popular with retirees, who weren't sure if a lump-sum payment now would actually pay off through a lifetime of guaranteed monthly returns. This is because people didn't expect to live all that long after retirement! Now, annuities are becoming popular products, because who could turn down a guaranteed monthly income for the rest of their life?

Of course, there are some drawbacks to annuities. An annuity is not a liquid asset, meaning you can't get cash out of it quickly and easily. Also, whatever lump sum you invest into an annuity cannot be invested elsewhere – say, in high-yield stocks. That's why we often tell clients that an annuity can be a valuable part of a diversified portfolio.
Since there are over 1,600 different annuity products on the market, consult with your financial professional about your options. Fees and terms can vary significantly, so it's best to receive professional guidance from someone intimately familiar with your finances before choosing and annuity product.

This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.