Using annuities with guaranteed income features creates lifetime guaranteed increasing income that cannot be outlived.
Look at how the income quickly drives down the account value even when earning a 4.00% fixed rate with no negative years.
How long would $407,000 last for a 60 year old couple if they could earn investment returns of 4.00% guaranteed every year, net of fees and took the same income stream?
Check out this case study for a recent client:
A 60 year old couple has $407,000 available for retirement income
They begin taking income after 5 years
- produces $13,400 starting in year 5
- Increases to $19,400 in year 10
- Increases to $31,400 in year 15
- Income guaranteed for the life of both spouses.
They would run out at age 92. If the investment returns were 3.00%, they’d run out at age 87. Incidentally, joint life expectancy for a 65 year old couple is age 92. This means they have a 50/50 chance of running out of income at age 92.
Call us about our new income solutions – our annuity team is ready to help!