Employees live off a monthly income stream; their paychecks. They make financial decisions prior to retirement based on how much money they have coming in every month. They save what they can and often have to finance big-ticket purchases or expenses with future paychecks.
Things change dramatically in retirement. Some living expenses go down, healthcare costs rise quickly, monthly paychecks stop, and spending decisions can get more difficult. Amidst these changes, retirees need to figure out how to invest their savings in risky financial markets, generate a monthly income from those savings, and make that income last potentially for 30 years or more.
Accumulation Annuities can help you manage these financial risks of a lengthy retirement. These types of annuities are deferred lifetime income built up within your 401(k)/403(b) plan, much like a traditional pension, which can enhance your monthly Social Security benefits with additional income that you can’t outlive. By combining Accumulation Annuities with Social Security, you have more flexibility and confidence to make discretionary spending decisions with the remainder of your retirement savings.