Even well-prepared retirees may worry about sustaining income over an uncertain retirement timeline. Longer lifespans can create additional income challenges, while home health care, assisted living, or even nursing care may further increase financial pressure. Market volatility is another consideration, as fluctuations can negatively affect a portfolio, particularly when withdrawing money.

Family and Retirement Solutions highlights these considerations as part of ongoing educational efforts focused on retirement income planning and risk management.

Given longevity risks, potential health care needs, and market volatility – it may be helpful to evaluate strategies designed to help manage income needs and reduce exposure to market fluctuation. Some individuals choose to explore insurance-based solutions, such as annuities, as part of a broader, diversified retirement income plan, depending on their goals, risk tolerance, and overall financial situation.

A fixed index annuity (or FIA) is a long-term insurance product designed to protect principal and provide interest credits linked to the performance of a market index, such as the S&P 500. The principal is not directly invested in the market. Interest is credited using an index-based formula, so in negative market years the account value does not decline when the contract is held as designed.

FIAs are long-term contracts and may include surrender charges or market value adjustments for excess withdrawals. These features would vary by product and carrier.

Some FIAs also include an optional income rider that can provide a lifetime income stream. This income is backed by the insurance company’s claims-paying ability. Even if the contract value is reduced to zero, lifetime income payments may continue provided all contract terms are met. Income amounts, rider costs, and their possible increases, vary by product and carrier.

In addition, many annuities offer an enhanced benefit feature that may increase – sometimes double-the – income payments. Eligibility is typically based on the inability to perform two out of the six Daily Living Activities, such as eating, bathing, and other self-care functions described in the contract.

Contract terms vary, including waiting periods (often one to three years), fees, coverage details, and benefit duration, often up to 60 months or until the contract value is depleted. The rider should be reviewed before purchase. For individuals with existing health conditions, these riders may be attractive since they typically do not require medical underwriting.

This information is educational and may not be appropriate for every individual. Consultation with a licensed life insurance agent who specializes in FIAs is recommended. Family and Retirement Solutions provides education and guidance to help individuals evaluate retirement income strategies within the context of their broader financial plans.

To learn more, please visit https://lauradrolet.com/.

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Company Name: Family and Retirement Solutions
Contact Person: Laura Drolet
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Phone: (843) 708-6019
Country: United States
Website: https://lauradrolet.com/