TOPEKA, Kan., Oct. 21, 2016 /PRNewswire/ -- With four million baby boomers retiring every year since 2011, it's no wonder that this is putting a strain on the nation in a couple different ways. Between baby boomers leaving the workforce with untrained individuals to replace them and the baby boomers cashing in on social security, that leaves many individuals looking towards, and focusing on, retirement with concerns about outliving their assets. In an attempt to make more money from existing assets, individuals who are heavily investing around the age of 55 may look to retirement planners who guarantee an eight percent return on hybrid annuity investments. Don't be fooled by an eight percent guarantee from a mediocre retirement planner. Income for Life Radio's newest podcast, "The Eight Percent Annuity Return Discussion", has recently been released in order to help protect Americans from disappointment from unfulfilled promises and from low returns on annuities for retirement.
Retirement Trends and Current Nationwide Fears
According to Forbes, "30 percent of U.S. households at or near retirement age have less than $10,000 in assets." When these individuals retire, they will be relying mainly on Social Security for their primary source of income. With retirees living longer, staying healthier, and having more debt when they retire, it's no wonder that income is a major concern. AARP surveyed Americans over the age of 50, and 59 percent said they were concerned about being able to save enough money for the future. Even more worrisome is that 62 percent noted that they were worried about being able to maintain their standard of living and lifestyle throughout retirement. But don't rush out to the first retirement planner you find on the internet in order to try and find the highest rate investments prior to retiring.
The Problem with the Other Guy's Eight Percent Promises
After the 2008 recession, finding investment interest rates that can make you a decent sum of money quickly may seem exceptionally difficult. So when you see a hybrid annuity that offers eight percent return guaranteed, it's no surprise you would want to jump at the chance to earn eight percent on your investment. But don't let the hype fool you and leave you disappointed when you don't make eight percent during the term of the annuity. While advertising an eight percent guaranteed annuity return isn't necessarily a lie, the full eight percent won't end up in your pocket. These types of guarantees are some of the most under talked about consumer misrepresentations in the retirement planning market.
"The eight percent returned income on an annuity is often derived from a guaranteed lifetime income rider," according CEO of Income for Life and Host of Income for Life Radio, Matt Nelson. "The eight percent rate is a 'roll-up rate' used to determine the total lifetime income payout from the annuity policy. These riders typically come with an annual fee, and in most cases, the annual fee for this type of rider is calculated using the bigger roll-up amount and is then taken from the smaller accumulation amount, make the fee much larger. Unfortunately, most retirement-planning clients do not fully understand that the eight percent roll-up is not available to them for a lump sum withdrawal and is only used to calculate future income."
While you will still receive some gains from these promised eight percent hybrid annuities, definitely read the fine print. When looking into annuities as a retirement-planning investment, it's important to work with an expert in the industry. Instead of constantly worrying about "buyer beware" situations with your retirement money, look for the right retirement planning expert. As a consumer, look for experts with a strong track record with results. Look at the numbers that a retirement planner can provide and the contractual agreements they work with. Choose from ones that are rated in the top one percent of retirement and financial planners. These experts will provide you with options like exclusive hybrid annuities, that can provide expected returns, that most planners don't even have access to. Planning ahead for retirement and pulling yourself out of the average population statistics where individuals fear outliving their money is possible, just be careful who you trust with your nest-egg.
About Income for Life
Income for Life is a retirement and financial planning firm that is rated in the top one percent of all firms worldwide. Founded and run by Matt Nelson, Income for Life specializes in contractually- guaranteed retirement planning strategies that focus on making sure you have enough money to stay retired for life. With a back office team of over 400 retirement professionals, Income for Life is an independent retirement strategy firm that provides services that are completely free to clients. Visit www.incomeforlife.org for more information about retirement planning strategies, and listen to Matt Nelson's podcast titled, "The Eight Percent Annuity Return Discussion" on Income for Life Radio, addressing what eight percent for hybrid annuities really means.
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SOURCE Income for Life