By the time you go to bed this evening, some 10,000 baby boomers will have turned 65 today. Many of them will have already vanished from the workforce. And many more will soon pull the same disappearing act.
How prepared for the financial pressures of post-work life — a period that may extend decades — are these retirees? How prepared are you?
Al says they plan to draw down assets from other investments to pay for primary expenses. But Ann worries doing so may erode their nest egg at an unreasonable rate. Addressing this gap doesn’t mean they must cut out the costs that create their preferred standard of living. The money they need is likely still there, but to Al and Ann it may be invisible.
One way to make it appear is through the benefits of an income annuity. It’s a product that can bridge the gap in primary spending by creating guaranteed income immediately and long into the future.