Don’t let life catch up to you too fast. Let us help you make sure your retirement savings plan is prepared so your income can be the way you want it, without any hidden surprises.
The average income of two-income families in this country is around $55,000 a year last time I looked. However, I think for the average retiree, it comes down to what that person needs long term.
Everyone has what's called an income floor. An income floor is the guaranteed amount of money coming into your account every month regardless of politics or geopolitical events. Included in this are social security payments and are the best inflation annuity on the planet.
In most cases, for the average income of the average retiree, annuities fit in as a part of the income floor. We engineer quotes using all carriers, and our proprietary annuity calculators find the highest contractual guarantee for your specific situation to reach the desired income for your lifestyle. I don't think average income should play into it.
Everything is customizable, including annuities, including your income needs. What do you want the money to do contractually, and when do you want those contractual guarantees to start?
I think that varies with every person. It comes down to what you're trying to achieve. Most, not all, annuity types were put on the planet to create lifetime income. I will need to know your date of birth or dates of birth if it's joint life, your state of residence, the account type, and when you want that income to start. From there, we will figure out if you want to put in a lump sum and find out how much income that's going to create, or do you want us to reverse engineer that quote and find out how much money would it take to solve for a specific monthly income amount?
Now, is inflation included? No. Are there annuities that address inflation? Yes, but not perfectly. In my opinion, the way to address inflation would be to reverse-engineer the quote to solve for that specific dollar amount needed based upon how much the inflation has increased.
So, comfortable retirement income annuities play their role because of their lifetime income streams, and you can never outlive that payment, which is a good thing. By the way, annuities are the only product on the planet that can provide that. It's a monopoly that they only can offer. So you can't hate all annuities and hate your social security.
The stats that I've seen seem low, so they're not even worth quoting, in my opinion. I think the better question is, why aren't there more pensions? Less than 10% of all private companies out there offer pensions. If you think logically about it, about 80% of all employees work for small businesses, and small businesses can't afford to offer pensions, only the large companies. However, the large companies have transitioned from offering pensions to offering 401k’s, which are defined contribution plans. 401ks are primarily in place for market growth to grow your money, but then you're on your own to create a pension. The average pension depends on how long you have worked, your age when you take the pension, and the state or company you work for.
The important thing is figuring out how much money you need to live well in chapter two of your life. You've earned the right to retire well and live well, so you need to find out how much money it takes, and then maybe an annuity can be used to fill in that gap of whatever is needed to pay the bills, to live the way you want to.
To find the highest contractual guarantees for your specific situation, call and let us reverse engineer you an annuity quote to make sure you don’t miss any gaps in your retirement plan.