You might be confident that your retirement nest egg will fund your lifestyle until your late 80's. But what if you live past that age into your 90's or until 100? Longevity annuities, or longevity insurance, are a lowest cost new annuity offering retirees who don't have all of their income in pension-like stream of payments into old age that can relieve worries about outliving your money and lowering your quality of life.
How it works: depositing a lump sum with an annuity insurer. Next step is to pick the income start age, usually years out, which will show you your guaranteed income payments for life. Having steady reliable income allows you to spend money freely in retirement and travel, knowing that you'll have a guaranteed income cash flow if you reach an advanced age.
July 2014 the IRS approved in the tax code a new QLAC (Qualifying Longevity Annuity Contract) which address delaying IRA RMD also know as Required Minimum Distributions until the age of 85. Lesser of 25% or $130,000 of your prior year IRA balance is the funding requirement maximums. This QLAC has the government encouraging lifetime income thru low cost comparable longevity annuities purchased in your IRA.
Immediate annuities, also know as single premium immediate annuity SPIA, are another low cost fee free income option for retirees to start to receive retirement income sooner.
Indexed-linked variable annuities or buffered annuities also called buffer annuities are one of the fastest growing investment in 2020. With high top side growth in the double digits along with double digit down side protection from market losses this is an investment to look further into. The best buffer annuities are the fee only kind. Contact us for a quote.