Recent studies conducted by Allianz and Wells Fargo reveal American people are more concerned about outliving their current savings than death itself. This is attributed to something called longevity risk; an individual’s lifespan surpassing their capability to earn income, savings, or retirement plans.
In 1935 social security was established to secure retirement income for individuals 65 and older. Pretty great idea, right? But get this; the average lifespan in 1935 was a whopping 61 years of age. The government expected that most citizens wouldn’t live long enough to earn these benefits.
Fast forward to today: a single, 65 year old female has a 53% chance of living to the age of 85. Married couples have even better odds – there’s a 72% chance that one of them will reach the age of 85 and a 45% chance one of them will pass the 90 year mark.
It’s crucial that we begin saving enough, budgeting for the future, and planning our retirement. The fact is this generation is living longer than the generation before. Include the fact that social security is predicted to run out of funding in 2034 and it equals a financially frightening future for senior citizens and pre-retirees.
So ask yourself; if you did not or could not work for the next 30 years would that be a financial burden? For many people this is exactly what their retirement years will look like. You may think to yourself, “I’ll just work longer.” But what if you can’t work in the future because of a disability or an illness.
Begin Planning Now
The good news is you can begin planning now for a guaranteed lifetime income. This means that even if your current retirement savings is zero, you can continue to receive an income stream in retirement. This is commonly known as a safe money retirement plan.
A smart advisor asks his clients this question, “Would you rather I help you possibly get rich? Or guarantee you’ll never be poor?”
Income annuities are the only product that will guarantee a lifetime income payment regardless of inflation, the stock market, or actions from the government. To learn more you can request your own no-cost, no-obligation consultation here.
As Steven Covey says in his Seven Habits of Highly Effective People, being proactive is vital. And you may live many years beyond 65 without the fear of running out of income!
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