Running Out of Money Before You Run Out Of Life

The devastating effects or living too long (the longevity crisis) and not having enough funds to maintain an anticipated quality of retirement is a real concern. LIMRA reports: The average life expectancy for a person who reaches the age of 65 is 83 for males, 86 for females. LIMRA purports that the proper way to interpret these statistics is to assume half of all males who reach age 65 will live past 83 and half of the females who reach that age will live past 86. Half of all couples who reach age 65 will have one partner hit 90.

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Don’t let your money die before you do

A recent article in Money Magazine shined a bad light on Americans planning for retirement.  Health care expenses, people living longer, and the lack of company pensions create a future disaster for many Americans.  How many? 40%!  Health care continues to mystify many retirees who have perceived Medicare as free; the only free part is Part A.  The exposure to out-of-pocket expenses is growing, and future estimates put the lifetime number of financial exposure in the multi-hundred thousands.

A report from the Life Insurance Research Board (LIMRA) reports that a high percentage of retirement advisors are saying there’s an enormous fear from their clients of running out of money.

The devastating effects of living too long (the longevity crisis) and not having enough funds to maintain an anticipated quality of retirement is a real concern. LIMRA reports: The average life expectancy for a person who reaches 65 is 83 for males and 86 for females. LIMRA purports that the proper way to interpret these statistics is to assume half of all males who reach age 65 will live past 83, and half of the females who reach that age will live past 86. Half of all couples who reach age 65 will have one partner hit 90.

How will the average person entering retirement make their money last as long as they do?

In the report, LIMRA stresses that the key is education: It is up to those entering their retirement stage to fully understand their options and choices. Important retirement money must last a long time. Obtaining the necessary information to make the correct decision can be arduous and overwhelming, but so can the opposite.

One key recommendation from LIMRA suggests advisors begin to seriously discuss products with guaranteed income solutions, such as annuities, with their clients.

Annuities can provide income for any period, even a lifetime, i.e., funds can last as long as you do. If you select an annuity as your primary retirement building platform, the other concern that will raise its head is inflation.

Many people choose to place a portion of their funds in an annuity (basic source of income) and other funds into an asset, which may help with inflationary issues.

Caution and education are of significant importance.

Many people have learned about the power of using the Safe Money approach to reduce volatility. Our Safe Money Guide is in its 20th edition and is available for free.  

It is an Instant Download.  Here is a link to download our guide: 

Safe Money Guide – Annuity.com

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

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Annuities are a safe and reliable investment. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

Our unique system of “Pooled and Shared” articles by our authors, our outside contributors, and writing assistants provides efficiency, enhanced collaboration, and greater topic accessibility. This allows for a better utilization of content and productivity while delivering meaningful content to our readers.

Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

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