Press Release
FOR IMMEDIATE RELEASE July 9, 2007
The fixed income annuity is a commonly misinterpreted asset. The virtue of the fixed income annuity is in its ability to provide ‘known’ income for the remainder of retirement years. With traditional corporate pension benefits on the wane and Social Security unable to completely fill the gaps, fixed income annuities assist in making a retirement portfolio longevity insured. Longevity risk, the risk of outliving one’s assets in retirement, is a real and potentially growing problem in America with the first wave of Baby Boomer retirees coming. Finding the optimal mix of financial vehicles for a secure retirement is imperative, whether it be CDs, stocks, mutual funds, bonds, or annuities.
The insurance industry has done a fair job at communicating the benefits of annuities. But the majority of Americans are still not fully aware of today’s annuities—with their greater flexibility and value to retirees. They are a formidable asset class, and their intrinsic value is little understood.
A sampling of key ideas follow:
• Fixed income annuities are not “investments,” and one cannot lose principal due to market declines.
• Fixed income annuities are a safe asset class. Retirees concerned about market declines, or outliving their assets receive assurances and guarantees inherent in the contract with insurers.
• Annuities have liquidity options, and new product innovations continue to offer greater flexibility.
• With a fixed income annuity, that portion of the retirement portfolio becomes longevity insured, and slows down the complete burnout of a portfolio owing to longer years in retirement.
Jennifer Warren, author of the publication and director of the Retirement Security Institute, says, “Having a portion of retirement assets in a fixed income annuity optimizes a retiree’s portfolio. It creates a safety net surrounding that portion of retirement income, which is now longevity insured. The monthly annuity payment now accompanies other longevity insured elements—Social Security income and any defined pension benefits.”
About the Retirement Security Institute (RSI)
The RSI’s mission is to provide credible analysis and meaningful information about retirement security issues, mainly health care and financial matters. The RSI is a knowledge company which produces a synthesis of research, information, and new ideas for both professionals serving the retirement market and retirees who need useful, straightforward information.
Copies of the publication may be obtained at www.retirementsecurityinstitute.com
MEDIA CONTACT:
Jennifer Warren
jwarren@retirementsecurityinstitute.com
tel: 214-906-7695
Source: Retirement Security Institute