You Work Hard. Your Money Should Too!

You Work Hard. Your Money Should Too!

May 25, 2022

You’ve spent your life working hard.  So, when it’s time to retire, you don’t want to worry if you have enough income to last. You want to be sure your hard-earned money is enough when you get there. It’s a fact that Americans are living longer which means more living expenses and continued healthcare needs.  With this trend comes more financial risk for retirees who will have to spread out their next egg longer. An average 65-year-old today will live another 20 years, about six years more than in 1950 according to the Centers for Disease Control and Prevention.1  Additionally, health care costs continue to rise. For the average 65-year-old, health care costs will be $280,000 over their retirement, further necessitating the need for lifetime income.2

Annuities offer tax-deferred earnings until you are ready to use them and can help cover the additional expenses of living longer such as housing, food and healthcare. If you have ever wondered if your assets will be protected or if social security will be enough, an annuity can be a safe choice by ensuring a set income, so you will know exactly how much money you’ll have when you’re ready to retire. According to the LIMRA Secure Retirement Institute, deferred annuities are forecast to have the largest growth rates over the coming years.3

Depending on your current life situation, you have some choices when it comes to choosing an annuity. If you’re a future retiree with years to go until retirement, a worthwhile option is a Fixed, Tax Deferred annuity.  Payments are delayed until you choose to receive them, which would typically be once you retire. Owners do not pay taxes during the accumulation phase. Taxes apply once the distribution phase begins, and the owner starts to receive payments.4

On the contrary, if you are near or enjoying the golden years already, you might want to consider a Fixed Immediate Annuity. This kind of annuity is designed to start paying a guaranteed income immediately.

KSKJ Life can help you decide which annuity path is right for you!

4.We are not tax advisors or financial planners. KSKJ Life does not provide investment advice and this material is not intended to provide investment advice.

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