We’ve all heard that retirees are living longer. We’ve also heard that a retiree’s biggest fear is running out of money. Even if we weren’t living longer as a populace, the need for income in retirement would remain. To state the obvious, if you’re retired, no one is paying you anymore. Except maybe Uncle Sam and can you really live on Social Security alone?
When you breakdown retirement planning, there are really two cornerstones of retirement planning that must be satisfied – and if you do that, the plan should be considered a success.
So what are those two cornerstones? Guaranteed Income and Long-Term Care (LTC).
Cornerstone #1 – Provide a guaranteed stream of income. How do we do th
at? There are a variety of fixed annuity options that all could help solve this threat. Immediate annuities, deferred income annuities, multi-year guarantee annuities, traditional annuities, fixed index annuities, income riders for fixed index annuities. If you’re talking guarantees, any of these could work and we would love to show you how well these compete with any other income generating vehicle available.
Cornerstone #2 – Long-Term Care; something not everyone wants to talk about. 70% of people over age 65 will require long-term care.1 Chances are you have someone in your life that has required or will require long-term care. It’s just a reality. As we get older, we need more help. The alternative is dying and that’s not much of a retirement plan. Care comes in so many forms – it could be as simple as somebody doing grocery shopping for you to being as involved as daily care both at home or in a nursing home. As we get older we need help – we just do. How will this “help” be paid for? Out of pocket? We’ll be destitute in no time. Sell the house? The memories, the comfort, and the freedom gone forever. Insuring for Long-Term Care or chronic care is really the best option and there are so many ways to do it now that there really is something for everyone. Here’s a list of some of the tools we use for solving this need: traditional long-term care, linked life/LTC, linked annuity/LTC, life insurance with LTC riders, life insurance with chronic care riders, and fixed index annuities with chronic care benefits.
Retirement planning is made simple with insurance products. We always talk about guarantees. Retirement planning needs to focus on guarantees, pre-retirees don’t have the time for risk. Once you take care of these cornerstones, your clients can sleep more soundly.
1 DHHS, 2008. Statistics taken from www.