A recent study found that 68% of respondents said the average American worker cannot save enough on their own to have a secure retirement.1 And while many employers offer 401(k)s with partial matching retirement savings, another study found that 56 million private-sector workers do not have access to retirement savings plans through their jobs.2
As one way to guard against retirement uncertainty, you may want to consider a fixed income component to your financial strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.
What is an annuity?
An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed payout options — some even for life.
Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.
1 Rachel Leland. Next Avenue. June 1, 2023. "It's not impossible to save for retirement: Here's how even low-wage workers can build a next egg." https://www.marketwatch.com/story/its-not-impossible-to-save-for-retirement-heres-how-even-low-wage-workers-can-build-a-nest-egg-ef4f7a16. Accessed June 20, 2023.
2 University of Pennsylvania. Wharton School. ScholarlyCommons. March 2022. "The Current State of U.S. Workplace Retirement Plan Coverage." https://repository.upenn.edu/prc_papers/726/. Accessed June 20, 2023.
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All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any statements referring to grow your income are not a guarantee or prediction of future performance. Any references to protection benefits, guarantees or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified tax professional for guidance before making any purchasing decisions.
Insurance products are offered through the insurance business Dason Wealth Management. Dason Wealth Management is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. The AEWM does not offer insurance products. The insurance products offered by Dason Wealth Management are not subject to Investment Advisor requirements.
1 Greenwald Research. SOA Research Institute. February 2022. “2021 Retirement Risk Survey.” https://www.soa.org/48fd8a/globalassets/assets/files/resources/research-report/2021/risks-retirement-findings.pdf/. Accessed June 20, 2023.
2 Tyler Bond, Dan Doonan and Kelly Kenneally. National Institute on Retirement Security. February 2021. “Retirement Insecurity 2021: Americans’ Views of Retirement.” https://www.nirsonline.org/wp-content/uploads/2021/02/FINAL-Retirement-Insecurity-2021-.pdf. Accessed June 20, 2023.
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Insurance products are offered through the insurance business Dason Wealth Management. Dason Wealth Management is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Adviser. AEWM does not offer insurance products. The insurance products offered by Dason Wealth Management are not subject to Investment Advisor requirements.
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. None of the information contained on this website shall constitute an offer to sell or solicit any offer to buy a security or any insurance product. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.
Any references to protection benefits, safety, security, steady and reliable income, or lifetime income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured.
The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. 1722734 - 6/23