US News & World Report's June 11th issue reports that nearly 50% of ALL workers have LESS THAN $25,000 saved for retirement. The startling figure includes 401(k) plans but does not include pension plans (now fewer in number) and home equity.
The report was based on a study for the Employee Benefits Research Institute, Matthew Greenwald & Associates. In the report less than 25% of workers aged 45-54 earning $250,000 or more has $25,000 saved; 19% of those earning $100,000-$249,999 had $25,000 saved and the figures look worse at the lower earning levels. Incredibly while the average percentage is 49% for all workers (which includes the highest earners), the figure drops to 32% for all workers 55 and over .
In a "Reality Check" report in the same US News and World Report article*, check out these expectations which are a mismatch to the current savings reality.
50% of workers expected and 24% of retirees reported to RELY on their savings in retirement
14% of workers expected and 40% of retirees reported to RELY on Social Security
22% of workers expected and 18% of retirees reported to RELY on other personal savings or investments
13% of workers expected and 21% of retirees reported to RELY on a traditional employer sponsored pension plan
A Deferred Income Annuity permits you to buy future income now. With a deferred income annuity you don't have to worry about the stock market and its volatility. You can know now what you are going to get in the future. You can take control of the future.
You might Consider a deferred income annuity for the fixed income component of your portfolio as a possible supplement, or alternative, to bonds.
Concerned about where interest rates are now and where they are going? Buy some income now and buy more later.
*Ibid. p 60
I am shocked that anyone in this day and age would think that they can rely on Social Security as income in the future! Yikes. The more I read about this, the more it leads me to consider annuities and other forms of future income as absolute necessities... at any age. Thanks for the information!
Jerry
www.leads4insurance.com
Posted by: Jerry | June 13, 2007 at 11:37 PM
This leads into a follow up question from my last post - can an individual purchasing an annuity determine (specifically, and in advance) when the attendant income will begin being paid out? Thanks,
Jerry
www.leads4insurance.com
Posted by: Jerry | August 21, 2007 at 10:35 PM
That's the idea of a deferred income annuity Jerry. You can define now what you will get then.
Posted by: John Darer | August 21, 2007 at 11:16 PM