Got an Extra $160,000?
You May Need It

A 50 year old today may well think he will live another 40 years to see his 90th birthday — and plan his retirement savings accordingly.

But if he makes it to 94, he better find a way to add another $160,000 to that retirement plan.

An article by Charles Passy in the Feb. 12 edition of The Wall Street Journal Sunday said that to prepare for just four additional years of life span over current projections, “someone who’s 50 years old now would need an additional $160,000 in retirement savings to maintain a modest lifestyle, experts say.”

The article goes on to say that the main problem facing many investors remains the risk that they’ll outlive their money. “It’s essential to plan financially at least through age 95 — and if you have a history of longevity in your family, figure on surviving to the century mark.”

Whenever I read any phrase about the fear of outliving your money, annuities automatically pop into my mind.

As baby boomers, including many who have become significantly more risk-averse since the

recession damaged their portfolios, realize that annuities can provide guarantees as well as a stream of income they cannot outlive, the products will continue to be attractive for retirement portfolios. With the low interest rate environment, continued worldwide market volatility, potential tax increases and the turmoil of a presidential election year, many boomers simply don’t know what to do about their retirement savings accounts. They need well-informed advisors who can provide them with the best options to meet their goals, and annuity products will no doubt be an important part of the plan for many of them.

Yes, some annuities and their accompanying income riders can be complicated products that are not easily understood by consumers — or even many advisors. The advisors at Statewide Retirement Planning Co. are fluent in their product knowledge can effectively educate their clients about the flexibility and customizable features afforded by cutting-edge annuity product design. Optional income riders, for example, are now available on almost all fixed index annuities and are being elected by purchasers well over half of the time, according to LIMRA.

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