People are living longer these days, and you may spend almost as much time in retirement as you'll spend working. How will you maintain your standard of living over 20 or even 30 years?
It is an important question. Several factors will influence your ability to do so:
Many companies are replacing pensions with employee-directed retirement plans that provide no guarantee you'll have enough money when you retire.
Many baby boomers (those born between 1946 and 1964) find themselves "sandwiched" between sending children to college and caring for aging parents, so they delay or may even forego saving for retirement.
As the postwar baby boom generation begins to draw benefits, many experts believe these benefits will be reduced or altered.
The constant nibbling of inflation can take a big bite out of your assets. An annual rate of 3.3% can cut your purchasing power in half in 21 years.
These factors combine to create a gap between a comfortable retirement and the ability to simply maintain a standard of living. How can you bridge this gap?
The quality of your future is your responsibility.
The first step is to understand that you will be responsible for the quality of your retirement, and that saving and investing will play a larger role.
Next, look at a variety of strategies that can help your money grow and help your assets last throughout retirement. These strategies include reducing taxes, fighting inflation, investing wisely, and managing your income.
One way to address all of these concerns is with an annuity.1 In fact, retirement is the No.1 reason why people purchase an annuity.2
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