Annuity Pros - Blog , Retirement Products

What are your sources of income in retirement?

Mon, 07 Apr 2025 08:04:08 -0700

What are your sources of income in retirement?

You know the sources of your income today, but do you know what retirement income sources you’ll need to allow you to live comfortably later? The answer is probably a combination of Social Security, personal savings, investments and employee-sponsored retirement plans.

You may even need to depend on part-time work as a source of retirement income. And if you’re lucky, you may also be among the shrinking number of people who’ll receive a company pension.

Social Security

Plan on Social Security accounting for roughly one-third of your retirement income. Depending on when you start receiving Social Security benefits.

Where will the other two-thirds come from?

Employee-sponsored retirement income plans

A retirement savings plan such as a 401(k), 403(b) or 457 comes with tax benefits, such as pre-tax contributions and the opportunity for tax-deferred growth. Plus, investing is easy because the money comes right out of your paycheck and is automatically deducted before you have a chance to think about spending it.

Just keep in mind that when you take withdrawals, the money is taxed as ordinary income and may be subject to a 10% penalty if you take it before age 59½.

Individual retirement accounts

Whether you’re self-employed or like do-it-yourself investing, IRAs can help you with your retirement income goals. Invest in a Traditional IRA and enjoy tax-free growth now but pay taxes when you withdraw. Or choose a Roth IRA and pay taxes now but take tax-free withdraws later.

As long as you earn taxable income you can contribute to an IRA.

Employee-sponsored pension plans

A pension benefit is typically calculated based on years of service, retirement age and ending salary.

If you're eligible to receive a pension benefit in retirement, call your benefits office and ask for your accrued and projected pension benefits.

Your accrued benefit is the annual amount you'd receive at your pension plan's normal retirement age if you left your job today.
Your projected benefit is an estimate of the annual amount you’ll receive if you stay at your current job, with your current pay, until your pension plan's normal retirement age.

If you’ll be covered by a government pension in retirement, it may be reduced by your Social Security benefit. For more information around retirement questions, please contact Annuity Pros, the Income Product Specialists.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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Planning for retirement in uncertain times

Sun, 01 Sep 2024 04:31:00 -0700

Planning for retirement in uncertain times

Consider it the new normal: planning for financial success in uncertain times. While it can be tempting to hold off on making decisions or taking action, waiting to see what changes future legislation may bring isn't likely to help you reach your retirement goals. In fact, now may be an opportune time to plan for the future and make sure you're on track for the retirement you've always dreamed of.

"Trying to time the market is a loser's game," says Annuity Pros. Instead, investors should create a long-term strategy that guides them through the expected ups and downs of the market—as well as more tumultuous conditions.

What that plan looks like depends on the investor, their retirement goals, and how close to retirement age they are.

Soon-to-be-retirees are in the "retirement red zone," like a football game. "Just as a football team can't afford a turnover when they are inside the opponent's 20-yard line, an investor can't afford a turnover when they are within a few years of retirement". If you're close to scoring your retirement touchdown, Annuity Pros suggests dialing down the risk in your portfolio. That way, you're protected if the market falls closer to your retirement.

Although younger investors have time on their side, since they can bear more fluctuations in the market, they too should be playing the long game, says Annuity Pros. "Building a well-funded retirement is a marathon, not a series of sprints". "Take a long-term perspective and your odds of success increase dramatically."

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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Why annuities are good investments

Thu, 01 Feb 2024 06:00:01 -0700

Why annuities are good investments

Annuities offer a wide range of benefits and features which can make them a good option for helping you reach your future financial goals.

As a nation, we're not ready to retire.1 Collectively, we are short by $4.13 trillion.2

Help meet your goals with the right product

Annuity Pros can tell you about the different kinds of annuities, including:

Variable | Fixed indexed | Immediate | Fixed

When you discuss your retirement goals with us, we can suggest an annuity — or a combination of annuities — that’s right for your needs.

Annuity Pros is aware of different annuity riders or features that can help create smart, tailored and more complete coverage to suit your goals.

Imagine the possibilities for growth

MAXIMIZE THE ADVANTAGES TODAY

Tax-Deferred Growth: Over time, annuities can accumulate with the advantage of tax-deferred growth. It lets you:

Delay paying taxes

Principal, interest and capital gains may accumulate tax free until you withdraw and take receipt of them; the benefit is that, when you withdraw during retirement, you're likely to be in a lower tax bracket.

Build value

By delaying taxes until withdrawal, your account can retain more value; by deferring taxes, you can use the power of compound interest to boost the base of your account with each passing year; over time, it can add up to more retirement wealth.

Similar to a 401(k), an annuity may have tax advantages

As a result, the government typically limits your access to withdrawals until after you're 59 1/2. Any earlier, and there's a 10% early withdrawal penalty.

Growth Potential

Some annuity options offer growth potential. Here's how:

You gain buying power
Some investments are beyond reach because minimum investment amounts are too high; annuities can help because you're in a larger group of investors.
You can skip fees or taxes
You may be able to exchange between investments without fees or tax consequences.
You can manage your investments yourself or use a money manager — it's your choice.

PROVIDE FOR THE FUTURE

Income, legacy and spousal opportunities:

Annuities are uniquely designed to be able to provide you with lifetime income options, legacy planning and spousal opportunities.

Lifetime income

Achieved through the use of annuitization at no cost or via a lifetime income benefit rider available for an additional cost.

Legacy

Most annuities have a return of premium standard death benefit (your beneficiary gets back what you put in at a minimum); however, you have the opportunity to purchase enhanced death benefit riders that could increase the amount left to loved ones.

Spousal opportunities

You're able to cover the life of your spouse on your annuity, either on a death benefit or a lifetime income benefit; please note that some carriers may charge a fee for these services.

PROTECT AND PLAN

Plan for what - and who - matters most!

ANNUITIES CAN ALSO PROVIDE DEATH BENEFITS TO A LOVED ONE

You can pass your assets to beneficiaries while avoiding the costly probate process. Married couples can also choose spousal protection.

Spousal protection offers security for both of you. With spousal protection, your Mr. or Mrs. is protected in the event that you pass away first. Your spouse then has the flexibility to choose:

Continuation - Continue the contract at the death benefit amount, or
Full payout - Take a lump-sum distribution

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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Understand the features and benefits of annuities

Tue, 02 Jan 2024 06:00:00 -0700

Understand the features and benefits of annuities

There are several types of annuity products available to choose from. Whether you’re looking for income options, legacy planning tools or spousal protection, your advisor can tailor a plan to meet your specific goals. For this reason, each annuity will differ in terms of:

Time frames
Fees
Rider options (lifetime income and death benefits)
Tax implications
Risk/reward

Flexibility
Rate lock-ins
Payment dates
Security
Spousal protection

Find the right fit!

Variable annuity

Greater opportunity for growth and more risk exposure

This may be a good option for you if you want the long-term opportunity for growth in the market and are able to handle the risks that come with the market's ups and downs.

Fixed indexed annuity

Guaranteed protection plus growth potential

This option may appeal to you if you want a chance for upside gains in a good market while also receiving a level of protection from possible downturns.

Immediate annuity

Immediate guaranteed income

This option is designed for people who plan to withdraw money in the first year, or for someone who has access to other retirement income and wants the security of a guaranteed income for the rest of their life or for a set period of time.

Fixed annuity

Guarantees with some growth

This may be a good choice if you want a guaranteed interest rate without market participation (minimal investment risk, but still a chance to grow money at a set interest rate).

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

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