GAO (Gov’t Accountability Office) States Delay SS, Add Annuities

 

 

 

 

Over the past couple months I’ve seen positive annuity articles published by the New York Times, FOX Business, SmartMoney and the Wall Street Journal!
Now add to the list the United States Government Accountability Office (GAO)!!!

On July 1st, Bloomberg News released a story based on the most recent GAO study. It states:

 

“The risk that retirees will outlive their assets is a growing challenge.” Increased life expectancies and health-care costs coupled with declines in financial markets and home equity over the last few years have “intensified” workers’ concerns about how to manage their savings in retirement. Annuities are insurance contracts that can offer a steady stream of income for life. Middle- income households, defined in the study as having a net worth of about $350,000 including their homes, that don’t have traditional pensions should consider using a portion of their savings to purchase an inflation-adjusted annuity.”

The study also points out:

  • Almost half of those near retirement are predicted to run out of money and won’t be able to cover their basic expenses and uninsured health-care costs.
  • A husband and wife who are both 65 years old have about a 47 percent chance that at least one of them will live until 90, the GAO report said.
  • An immediate annuity can protect retirees from the risk of outliving their savings. For example, a contract purchased for $95,500 by a 66-year-old couple in Florida may provide $4,262 a year until the death of the surviving spouse and include increases for inflation. And
  • Only six percent of workers with a 401(k)-type plan have thus-far opted for an annuity at retirement.

If you want yet another great credibility piece to use with clients, CLICK HERE FOR THE FULL COPY.
When I can help with anything else in your practice, contact me. Make it a great month in July!

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