Benjamin Franklin, a real retirement revolutionary.
Benjamin Franklin—writer, inventor, Founding Father…proponent of deferred income annuities? You see, old Ben did more than push the boundaries of science and ingenuity; he is equally famous for being resourceful with money. In his will, he left the cities of Boston and Philadelphia what essentially amounted to annuities that provided payments well into the future.1 Some of that money was even earmarked to be distributed two hundred years after his death.
Fast forward to 2017, and Franklin’s wisdom has found its way into many retirement plans in the form of deferred income annuities. A deferred income annuity provides a worry-free stream of guaranteed income starting at a time in the future that you choose. Deferred income annuities are typically purchased during your working years as another way to increase retirement income. The amount of income they provide depends on factors, such as your age, gender, how much you pay in premiums, and what payout option you choose.
People are living longer, and fewer of them are receiving traditional defined benefit pension plans from their employers. "[A] Towers Watson study found that from 1998 to 2013, the number of Fortune 500 companies offering traditional defined benefit plans dropped 86 percent, from 251 to 34.”2 That means Americans need to take more responsibility for generating income in retirement. As part of a diversified financial portfolio, deferred income annuities can help make your retirement savings last throughout your golden years.3
Looking back more than two centuries later, you could say that Franklin’s foresight—harnessing the power of deferred income—made him more than just a wise financier, it made him a full-fledged retirement revolutionary.