Fixed annuities can play an important role in your retirement planning. While a pension and Social Security may provide some retirement income, it may not be sufficient for the kind of retirement you want to have. Fixed annuities can help you save for retirement and provide you with additional income over the years ahead.
What Is a Fixed Annuity?
Essentially, a fixed annuity is a CD-type investment issued by an insurance company. You pay into the annuity, either in one lump sum or in payments over time. In exchange, you get a guarantee of receiving payments in the future, either for a specified period or for the duration of your life.
How Can Fixed Annuities Help with Retirement Planning?
Annuities are designed to help you save for your retirement and provide you with income when you retire. They offer several benefits, including:
- Tax-deferred growth potential
- Protection from market downturns, which is helpful in keeping up with rising medical costs and inflation
- Flexible income options
- Joint-life payout for both you and your spouse during retirement
- Death benefit for your beneficiaries (or a cause or charity you believe in)
Fixed annuities can be immediate or deferred. Deferred fixed annuities accumulate interest at a regular rate, while immediate fixed annuities make fixed income payments during your retirement years with amounts determined by your age and the value of the annuity.
At Cole Insurance and Senior Solutions, we listen to what your concerns and goals are for retirement, how much you’ve saved, and how much you may need, and then help you build an income plan for cash flow designed to last.
Contact Cole Insurance and Senior Solutions to schedule an appointment today!