39% Social Security 18% Pensions and workplace savings, e.g., 401(k)
3% Other
When we live longer and longer, Social Security maybe not enough for you have a good retirement years. More retirement dollars will come from your own savings to make sure you have adequate money available throughout your retirement years.
What are the advantages for annuity
Choose your income payment plan
Single Life: You receive money as long as you live.
Joint and Survivor Life: You receive money for life. After your death, your spouse continues receiving the money for life.
Period Certain: You and your spouse receive money for a period of time such as 5, 10, or 20 years.
Tax-deferred growth
The money you put into your annuity and any interest you earn are to grow tax deferred over years. You pay tax once you start receiving money. After you retire, your income tax bracket may be lower which helps you to pay less amount of tax.
Access to your money
If you plan to access your retirement money early, you can take advantage of the free withdrawal amount allowed annually by most annuities.
Advantages for your beneficiary
One key advantage is that money from an annuity is distributed to your beneficiary free of probate.
What types of annuities I can choose:
Fix Annuity
A fixed annuity earns a fixed rate. You put your money to the insurance company for a fixed period of time. In return, the insurance company provides you with a guaranteed interest rate.
Variable Annuity
With a variable annuity, your money goes to the subaccounts you choose. In return, you receive a rate of return based on the performance of the cubaccounts you picked. Usually account service fees are charged for these kind of annuities.