Annuities are one of the ways that seniors are paying for the costs associated with retirement.  Seniors pay for costs upon retirement in a variety of ways.  Most of us are not millionaires or have old family money which will last us our lifetime and to support all of the costs associated with life after working.  Annuities are one of the ways that seniors are paying for retirement.  Beware of scams with regard to purchasing an annuity.  Seniors often fall victim to scams and fraud.  Assisting your senior with making all of the financial decisions can be a beneficial way to prevent and reduce the potential for fraud.

Many seniors, long before retirement, may consider hiring a financial planner to help determine the amount of money which is estimated to be needed in addition to other savings, Social Security and retirement.  Insurance companies sell annuities and seniors pay premiums for a large part of their lives to have enough money in their annuity to retire.  Some annuities allow people to borrow against the policy for family emergencies and important life events with a low interest rate.  Other policies, the money tied up in the annuity may be harder to reach or come at an expensive rate to use it before retirement.  Having a financial planner assist in the decision of whether an annuity is a financially stable and sound decision will be beneficial, as most of us will have a hard time reading through and understanding all of the contract language.  Some immediate annuity plans are helping seniors pay for their expenses in retirement.  Premiums are typically immediate and income payments will start about one year afterward with immediate annuities.

Ask a lot of questions with regard to the annuity contract.  If there is anything in the contract language which you may not understand, it may be necessary to ask a financial planner to review.  Insurance companies are clear on the guidelines, penalties, premiums and fees in the contract for annuities.  There are many options available with regard to annuities and it is best to take the proper amount of time to render a decision about which of the annuities is right for you.

This entry was posted in Estate Planning - Financial Planning For Seniors and tagged , , . Bookmark the permalink. Trackbacks are closed, but you can post a comment.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>


This site uses Akismet to reduce spam. Learn how your comment data is processed.