Create a Guaranteed Lifetime Income with an Annuity in San Diego
With the decline of defined benefit plans and increased popularity of defined contribution plans, such as 401(k)s, responsibility for managing retirement savings has shifted from the employer to the individual. Advances in medicine have resulted in increased longevity – today’s retirees may spend 20, 30, or more years in retirement. In addition, the volatility of the stock market and the uncertainty of Social Security add to the retirement challenge.
An annuity is an insurance contract that offers an efficient solution to what otherwise could be an overwhelming asset management task: creating a steady paycheck in retirement that cannot be outlived. Individuals without access to workplace retirement savings plans have an even greater challenge: to independently accumulate savings during their working years and manage those savings to last throughout retirement. Annuities offer solutions to both sides of the retirement equation: They provide ways to accumulate retirement savings and to turn savings into an income stream that cannot be outlived.
There are several types of annuities; some of the most common that do not expose your money to market risk are fixed and indexed.
In a fixed annuity, the insurance company will guarantee that you will earn a minimum rate of interest during the time that your account is growing. The insurance company can also guarantee periodic payments. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse.
An indexed annuity credits interest based on an external index. During the accumulation period, when you make either a lump sum payment or a series of payments, the insurance company credits you with a return that is based on changes in an index, such as the Dow Industrial or the S&P 500. The insurance company also guarantees no losses due to market performance. Many index annuities also offer “income riders” that guarantee a minimum amount of income that you can receive for you and/or your spouse’s lifetime.
Abrams Insurance Solutions represents only the highest rated annuity companies in San Diego, CA. Please call us at 858-703-6178, or email us to have us shop each and every one to find you the best annuity to meet your specific goals.