Why
should I consider purchasing an annuity?
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You
may need to protect yourself against outliving
your assets, even if you have diligently
saved for your retirement. Consider the
following:
- Retirement plans limit contributions
Employer-sponsored plans such as a
401(k), 403(b) or Keogh are an important
part of planning for retirement. However,
contributions to these plans are limited.
- Social security and pensions
may not be enough
Your social security and pension may
provide less than you need to retire.
In 2002, the average Social Security
check was $876 per month, according
to the Social Security Administration
and the value of fixed pensions is
eroded by inflation.
- Inflation and taxes can eat away
at savings
Over time, inflation will make everything
you purchase more expensive, so your
investment earnings need to keep pace
to maintain your current standard
of living. Many sources of income
may also be taxable such as Social
Security, IRA payments, interest earned
on CDs and savings accounts. You may
end up with a lot less after-tax income
that you had been expecting.
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