How will you get paid in retirement?
How will you get paid in retirement?
What’s the right mix of investments to support your retirement income needs? Apparently, that question is becoming the number one question asked by retirees looking to gain some peace of mind and put aside worries of running out of money in retirement.
Do you plan to work in retirement or do volunteer work? Perhaps you want to travel or pursue a hobby. You have the time but not sure what the future holds and hesitant to spend retirement assets for fear of coming up short later on down the road? How important is guaranteed income, access to capital and leaving a financial legacy?
Why are so many American households unprepared for retirement? Did you know that:
Only 5 states require high school students to take a class about money!
The average American household only has about $135,000 saved for retirement!
61% of people age 44-75 actually fear running out of money in retirement more than they fear death itself!
40 % of pre-retirees are expecting a decline in their standard of living at retirement!
What should you do? Who do your turn to? How can you get help?
These are questions that many people are asking. At Amerity Financial, we have answers. Our financial professionals will walk you through each step of the process, educating and guiding you to the information that we believe will empower you to make informed choices.
Worried you'll run out of money in retirement?
A recent Amerity study found that three out of four retirees don’t have an income plan, and of that group, one-third said they didn’t create a plan because they were afraid of what it might tell them.
The unknown is a primary cause of anxiety. Will tax rates be higher in the future? Could inflation actually force cut backs on your spending? Will Social Security be there? What about Medical expenses? How long will my retirement need to last? Are your investments going to be able to grow at a rate to keep your retirement base or will you have to start spending down your principal? Will you be able to count on drawing out 5% annually or is 3% the maximum to maintain your base? What is your safe withdrawal rate? These unknowns are all reason to be concerned.
Income is obviously one of the most crucial issues in retirement. If guaranteed income is important to you then contact us to learn more about one of our retirement solutions and take the guess work out of your retirement income.
What should you do? Who do your turn to? How can you get help?
These are questions that many people are asking. At Amerity Financial, we have answers. Our financial professionals will walk you through each step of the process, educating and guiding you to the information that will empower you to make informed choices.
Guaranteed Lifetime Income Options
What is an Income Rider?
Income riders are designed to provide lifetime income, safety, predictability, guarantees, and peace of mind to people who are worried about running out of money in retirement. Income riders allow the annuity owner to make withdrawals from the annuity without having to annuitize. Unlike annuitizing, the income rider method of guaranteeing income allows you to control and access your remaining annuity cash value. The amount that can be withdrawn is based on a percentage of the "income base" or "income account" in the annuity - and this percentage increases with age until the rider is turned on. These riders guarantee the annuity owner will receive an annual payment for life, or a "guaranteed lifetime withdrawal benefit", even if the policy’s "accumulation" or "cash value" drops to $0.00. Keep in mind, the only way an annuity's cash value can drop to $0.00 is via fees or withdrawals.
Is there more than one option with choosing an Income Rider?
Income riders make it easy for you to receive your lifetime income payments throughout retirement. Income riders are optional - some annuities are designed for income, while others are designed to accumulate value and may not have an income rider option. The beauty of the income rider is that it provides options and flexibility to fit your needs on an ongoing basis. Some income riders offer fixed income, while others offer increasing payments to keep up with the cost of living. There are also rider options to increase the payout to your beneficiary at your passing. Whichever rider you choose, when you are ready to start your income, your payment is guaranteed for the rest of your life – no matter how long you live.
How does the Income Rider work?
On the day you purchase your annuity your Amerity Financial professional will explain the income riders that will be available to you depending on your needs. When you are ready to begin your retirement, your maximum income payment is a percentage of the "income account" value that is based on your age when payments begin. Also, it is important to note that there is a difference between the annuity's "cash account" and the "income account". Your payments are guaranteed for the rest of your life for as long as you live.
Can I cancel my Income Rider?
With most income riders you can cancel the rider anytime. Once the rider is terminated, it may not be reinstated.
Our Financial Professionals are well versed in the annuity options that are available. We will take the time to educate you on all aspects of these instruments because we understand they can be extremely confusing.
Predicable Payments
If you want predictability of knowing exactly how much each payment will be for the rest of your life, you can opt for a stable lifetime payment option.
Increasing Income
If you expect to live a long time and / or want to keep up with the rising cost of living, you can opt for a payout that increases over the course of your life.
Enhanced Benefits
If you anticipate health problems or are concerned with leaving a financial legacy, there are options to help pay for home care as well as enhanced death benefits for your beneficiaries.
Questions? Concerns? We can help!
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"Life happens and at any time a person's needs may change. We've seen it happen time and time again, so it's important for us to build flexibility into the overall retirement solutions we provide. We have helped clients realize the security available in Amerity's retirement solutions since 1994 and continue to build on the trust we established with our very first client."
Mark Wells, Amerity Financial CEO & Principal