When it comes to retirement planning, one of the tools growing in popularity is an immediate annuity. Immediate annuities can provide retirees with an income they can't outlive, a real security blanket as people live longer and longer. New York Life's Lifetime Income Annuity, issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation) also provides solutions to other retirement issues people face as they move from accumulating retirement savings to devising a retirement income strategy.
As Baby Boomers approach retirement, one thing is apparent: Their retirement will be far more complex than their parents' retirements were. Not only must they be concerned about accumulating enough money to retire comfortably, but they must also think about how to make that money last a longer time, perhaps as long as 30–40 years. However, according to the 2009 Retirement Confidence Survey issued by the Employee Benefits Research Institute1, many Americans have little money put away in savings and investments. 53 percent report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000. In fact, 20 percent say they have less than $1,000 in savings.
Once Boomers realize they need to make the transition from savings accumulation to savings disbursement, and devise a retirement income strategy for the money they have been faithfully socking away, a number of key issues arise:
- First and foremost they want a plan that will enable them to maximize the monthly income they receive from their savings and enjoy retirement for as long as they live.
- They want to protect themselves against the cost of inflation.
- They want to be sure they will not lose all their money if they die too soon. (If they have heirs, however, they might want a plan that balances their income needs with one that will also enable them to pass on their assets should they die prematurely.)
- And, in case of emergencies, people also need to have ready access to their money without being subject to penalties and fees.
With the Lifetime Income Annuity, New York Life continues to create innovative financial products that meet the changing needs of its policyowners and prospects.
1 Ruth Helman, Craig Copeland, and Jack VanDerhei, "The 2009 Retirement Confidence Survey: Economy Drives Confidence to Record Lows; Many Looking to Work Longer," EBRI Issue Brief, no. 328, April 2009.
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|Lifetime Income Annuity Responds to Baby Boomer Retirement Concerns|