Annuities can be an essential addition to anyone's retirement planning strategy. Here are three compelling facts about annuities that you should know:
Adding an annuity to a retirement portfolio lowers the risk and increases the return of that portfolio. If you're skeptical, consider the white paper from Ernst and Young which concluded that the best retirement portfolios include investments, life insurance, and annuities. It's not just my opinion; it's based on thorough analysis and research.
Believe it or not, studies have shown that people with guaranteed lifetime income from annuities are generally happier in retirement. Even the Wall Street Journal published an article stating that the secret to a happier retirement is friends, neighbors, and a fixed annuity. Retired individuals, such as military personnel, government employees, teachers, police officers, and firefighters, who receive guaranteed monthly paychecks tend to have more enjoyable retirements.
Research indicates that individuals with guaranteed lifetime income tend to live longer. A study by the University of Chicago found that people who purchased lifetime annuities lived longer than those who didn't, and this was also highlighted in the Freakonomics podcast. Attorney Patrick Trickery, in an article for the Journal for Financial Service Professionals, noted that the average 65-year-old in America with a lifetime annuity lives 20% longer than those without such a product. The reasons are simple: less stress, no worries about market downturns, and more motivation to lead healthy lives.
Some people seek vitality through cold showers or expensive supplements. Perhaps it's time to consider the comprehensive value of an annuity the ultimate supplement for a secure and fulfilling retirement.