Americans age 65 and older rely on Social Security for 90 percent of their family income (based on statistics from the Social Security Administration). In a recent survey, 57 percent of respondents had less than $1000 in savings (201 Go Banking/Rates Survey).

Any American's worst fear is running out of money in their retirement (New Generation Ahead Study, Allianz Life 2017). In most cases, this fear is worse than the fear of death. It has been said time and time again that you should ALWAYS have at least three months salary saved in your savings account. You pay into Social Security for more than 30 years. We get all those statements from Social Security Administration each year telling us what our estimated Social Security check is supposed to be. So, you go from $2,000 a month for the rest of your life to absolutely nothing in retirement. That is definitely going to put a dent in your plans for when you retire.

If you plan on retiring in the next 5 to 15 years, annuities can help protect your retirement funds from market volatility and inflation, while still providing growth opportunities. Annuities can be a more stable asset allocation strategy compared to other products., but the average consumer doesn't know much about annuities. They don’t consider them when navigating and building their retirement strategies, but they should!

Annuities are the only financial service product that can guarantee a minimum income amount for the rest of the purchaser’s life. Most people will need some sort of help going through the necessary steps for planning for the retirement years. Eighty-four percent say their financial professional should “make sure I have adequate guaranteed income for life.” (Reclaiming the Future Study, Allianz Life 2016).

That's why a lot of financial professionals recommend annuities and why more Americans are seeking out annuities to help them with their retirement income. Most annuities do have surrender charges if you withdraw the money from the policy during the surrender period. The surrender period is typically between 5-10 years. The biggest myth about annuities is that they’re expensive and have huge fees. Annuities are competitively priced and usually don’t have any direct fees unless additional features such as accelerated death benefit are added.

A more common reason people may not purchase an annuity is because they don’t understand or know what will happen to the remaining money if they pass away. In almost every case, the remaining money would be received by the beneficiaries. Annuities are not for everyone, and they do not always fit every financial situation. At IMOR Financial, we listen to each client's concerns and provide custom feedback based on their unique situation. 

To get more information about annuities and how they could help you with a guaranteed payment in your retirement, email Vickie at This email address is being protected from spambots. You need JavaScript enabled to view it. or call her at 717-790-2171.