Annuities and Your Social Security Benefits
Annuities and Your Social Security Benefits
Many adults in their 50s and 60s are spending time worrying about whether their retirement planning is going to pay off. Outside of traditional retirement savings accounts you may be wondering what other sources you have to rely on. Many people plan on social security benefits once they reach retirement age, along with their retirement accounts, or maybe even a company pension. However, many people today may not feel completely set up for their retirement years. Discover how social security benefits and fixed rate annuities can work with your financial plan for retirement.
Social Security Benefits
The benefits Americans receive from social security are designed to pay retired workers a continuing income after retirement based on how much you earned during your working years. You can begin drawing from your benefits as early as age 62 and as late as age 70. Currently, many Americans are relying on social security as an income stream during their retirement. How much you get per month from social security depends on how much you paid into it. So depending on how much you made in the workforce, it can differ from person to person. However, many unretired Americans feel they won’t be able to rely on social security benefits in their retirement like people today do, with up to 42%* doubting they will receive any benefits. This has caused many people to look into alternative ways to supplement their retirement income.
Annuities for Retirement Income
Since many Americans are feeling like they won’t be able to rely on social security benefits, it has caused people to look into other ways to create a somewhat similar income stream. Outside of a 401k, pensions, or other traditional retirement savings, a fixed rate annuity could be a promising addition to your income stream. With a fixed rate annuity, you are able to draw on monthly payments through retirement to help supplement your income.
Fixed Rate Annuity
A fixed rate annuity guarantees the buyer a fixed interest rate on their contribution during the guarantee period. Unlike some other annuity options, a fixed rate annuity is not linked to stock market performance or other investments. When you purchase a fixed rate annuity, you have one premium payment that will lock in your interest rate upon purchase, and will then earn a steady annual interest rate for the entirety of your guarantee period. This means your interest rate will not change during the guarantee period of your annuity. This will in turn set you up to know exactly how much your premium will earn, allowing you to plan for how much your monthly payments will be through your retirement.
Americo Financial Life and Annuity Insurance Company offers a fixed rate single premium annuity with a multi-year guarantee ranging from two to seven years. Learn more about our current interest rates for this annuity. If you have questions and would like to know more about our MYGA fixed annuity products, Contact a trusted Americo agent to learn more about what an annuity can do for you. You can also discover how a fixed rate annuity with Americo can help your financial future with our annuity calculator. For those who feel ready to purchase an annuity, contact us today.
*“Looking to the Future, Public Sees an America in Decline on Many Fronts: Retirement, Social Security and long-term care”. Pew Research Center. 2019. https://www.pewresearch.org/social-trends/2019/03/21/retirement-social-security-and-long-term-care/?utm_source=link_newsv9&utm_campaign=item_258335&utm_medium=copy.