How to Avoid Depleting Your Retirement Nest Egg

The #1 retirement fear of Americans is running out of money. AARP reports that 50% of Americans share that fear.

And with good reason, because the average 65-year-old (the average retirement age in the US is 61) will outlive his or her savings by almost a decade, according to the World Economic Forum. Unfortunately, many will be forced to choose between putting food on the table or paying for life-saving medicine and may end up being dependent on their children.

We spend our working years hustling to build up our retirement nest egg. We assume that when we retire, we’ll supplement Social Security by withdrawing some of the principal. But no one can give us surefire guidance on how much we can safely take from our nest egg each year. In fact, William Sharpe, winner of the 1990 Nobel Prize in Economic Sciences, said retirement income planning is “the hardest and nastiest problem in finance.”

How long will your money last in retirement?

Perhaps you’ve heard that you’ll be safe if you withdraw 4% or 5% of your savings each year, adjusted for inflation. But many experts now recommend a maximum annual withdrawal of 3%. One financial writer even said, “There are so many variables that it is impossible to calculate a bulletproof withdrawal rate rule – unless that rate is 0%.”

Creating a bulletproof retirement fund distribution plan is not as simple as following some arbitrary percentage rate. And blindly following that advice will not only put your retirement nest egg in jeopardy but make some of your biggest retirement fears come to life.

Growing Your Money Safely and Creating an Income You Won’t Outlive

Thankfully, there’s a solution that addresses all these concerns.

Generations ago, financial whizzes created a specific financial vehicle to ensure your money lasts as long as you do. It’s the vehicle recommended today by the Center for Retirement Research at Boston College and other experts.

This financial vehicle is called a retirement annuity. Because it’s designed to guarantee you an income no matter how long you live, and regardless of what’s happening in the stock market or the economy, the Wall Street Journal calls annuities…

“A Retirement Account with Airbags”

Retirement savings expert Kimberly Langford, writing for AARP, says:

“One of the most significant risks in retirement is outliving your savings. You can save carefully through the years, but there’s a big unknown when you start to withdraw the money: You don’t know how long your savings need to last because you don’t know how long you’ll live.

“An income annuity can guarantee that you’ll receive a check every month for the rest of your life. An annuity can help supplement other sources of guaranteed income, such as Social Security. It can be especially valuable if you don’t have a pension. Annuities also help to protect you against stock market turmoil. Your payouts will continue no matter what happens in the stock market or how long you live.”

And according to J. Mark Iwry, Treasury Department Deputy Assistant Secretary for Retirement and Health Policy from 2009 to 2017…

Annuities can help retirees protect themselves from outliving their savings.”

Frank O’Connor, vice president of the Insured Retirement Institute, agrees. “An annuity is the only financial product that can generate income that will last as long as someone may live, whether that’s to age 80, 90, 100, or 110.”

And modern retirement annuities have great flexibility, allowing you to adapt to unforeseen events while still guaranteeing you an income for life. If you choose, you can specify income that will last as long as either you or your spouse or significant other may live.

Is an Annuity to Protect Your Retirement Nest Egg Right for You?

Annuities are very versatile, but an annuity may not be right for everyone. Annuities are for people who want guaranteed monthly income throughout retirement. The age at which people typically start an annuity is between 40 and 90. And setting up a retirement annuity is probably easier than you think.

A Bank On Yourself Professional can help you sort through the various annuities and enhancements and analyze whether you could benefit by adding an annuity to your retirement financial plan. As they look at your unique situation, they can identify the combination of safe money strategies best suited for building your nest egg safely and predictably. Bank On Yourself Professionals work with more than 40 top-rated, financially strong life insurance and annuity companies. All told, they have hundreds of different annuities and guaranteed financial strategies to choose from.

Ready to start protecting your retirement and ensure your money lasts as long as you do? Request a FREE Consultation here now, and you’ll be referred to a Bank On Yourself Professional who will arrange a time to speak with you to discuss your specific situation. They’ll help you identify your primary short-term and long-term financial goals and the best way to reach them without taking any unnecessary risks. The consultation is free and there’s no obligation.

You’ve worked hard building your nest egg for retirement. Now is the time to protect it. Request a free consultation with a knowledgeable Bank On Yourself Professional here today: