Retirement Income (NAPS)—Morethan 10,000 Baby Boomerswill turn 65 today, and about 10,000 morewill cross that thresh- old every day for the next 13 years. Few of them, however,will take the time to adequately plan for the next phaseoftheir lives. Many Americans expect Social Security to provide much of their retirement income, despite growing concerns aboutthereliability of future payouts. The federal insurance program—onceconsidered a dependable Annuities can be a dependable, long-term means of retirement savings. less certain as Boomers begin receiving benefits at a rate greater than whatis flowing into the system. According to a recent study commissioned by the Bankers Life Center for a Secure Retirement, nearly threefourths of middle-income Americans say that Social Security benefits make up at least half of their retirement moneyin your annuity earns a guaranteedfixed rate of interest and accu- source of retirement income—is now income. Financial experts, however, say annuities maybe the better option for a dependable, long-term means of retirement savings. Annuities function like reverse insurance: the owner pays a lump sum and receives payouts. There are several reasons annuities are widely considered a secure, dependable option for retirement planning. Theprincipal investmentis not affected by market gainsorlosses. Earnings accumulate on an income-tax-deferred basis. In most cases, an annuity pay- out can be completed without a lawyer. There are manydifferent types of annuities. Fixed Interest Annuity. This product is designed to help you accumulate funds for your retirement. The mulates on a tax-deferred basis, meaning you do not pay taxes on your earnings until you actually withdraw them from yourpolicy. Fixed Indexed Annuity. A fixed indexed annuity provides the guarantees that come with fixed annuities but is combined with the opportunity to earn interest based on changes in an external market index. Because you are not actually participating in the market, the money in your annuity is not at risk. Immediate Annuity. An immediate annuity is purchased with a single lump-sum payment and, in exchange, pays a guaranteed income stream that starts almost immediately. Manyof the variables that affect retirement security are in your hands. Talk to your trusted financial advisor and learn about the retirement planning options available to you today, so you can ensure a secure tomorrow. For further facts, visit https://nafa.com/advocacy/nationalannuity-awareness-month. Note to Editors: Although June is National Annuity Awareness Month, this article can be of use to your readers at any time.
