Fixed annuities can play a major part in helping seniors secure their financial future. Here, we consider precisely how annuities help both individual retired people and their families.
Through factors like tax-deferred accumulation and competitive returns, fixed annuities offer many perks, including security through different guarantees. However, they also provide an important benefit, which is, insurance regarding retired investors against economic instability. should the senior Ofer lifetime annuitization, they can receive a lifetime income irrespective of economic instability. However, the senior is not locked into that choice as they have many different ways to harvest their principal and interest.
Below are a few benefits of the fixed annuities for seniors:
1. By offering a steady income, fixed annuities are a good choice for retirees who wish to maintain independence. There are also options for you to decide on fixed term annuities, so you receive this particular additional income only during that period of time, or, annuities that offer life-time payouts in case you so wish.
2. Fixed annuities offer you features that are tailor-made for mature investors, such as the systematic and adaptable withdrawal options. Thus, you are able to decide to create a pension selection that suits you best.
3. With fixed annuities get a principal guarantee so that you can rest assured that you will receive back the initial premium paid (less surrender expenses, if applicable, or other costs).
4. You can also opt for a unique feature referred to as the nursing home waiver. The nursing home waiver will waive any surrender charges should you need to use your fixed annuity because of confinement to a nursing home. Additionally, many annuities have a terminal illness waiver that should you be struck by a terminal illness, again, you would be able to liquidate your annuity without surrender charges.
5. Should the senior never use their fixed annuity, the annuity can be left to beneficiaries without probate. Like IRAs, and annuities have a named beneficiary in the contract so that the accumulated balance will pass directly to that beneficiary. Of course, the beneficiary will pay tax on the accrued interest at their own tax rate.
If you are close to retirement or retired and have not taken a look at fixed annuities this author would urge you to do so for potential inclusion in your portfolio.