Approaching the ages of 50 or 60 can cause a certain amount of anxiety in anyone without a proper retirement plan. Some would like to be able to count on a steady retirement income, preferably matching their current one. Some may wish to spend their retirement knowing that, should a need arise; they will be able to financially afford a good nursing home and appropriate care. Some would like to be able to travel to countries they haven’t been able to visit while they were working. Whatever the case may be, a good retirement plan is something every smart working person should have.
Under the slogan “Retire Your Risk” a consortium of financial services companies called Alliance for Lifetime Income, which includes names such as Jackson National Life, Nationwide, Prudential and TIAA, have decided to make a good retirement plan a less complicated thing to achieve. They plan to help pre-retirees devise a sound strategy for income planning and funding their retirement years.
A recent survey has shown that a large percentage of working people do not have a good retirement plan that will enable them to match their current paycheck, mostly due to the complexity of available methods, such as annuities. Even bank CDs, stocks, bonds, mutual funds and ETFs can become complicated quickly. The goal of the initiative is to simplify the process and make it more achievable.
While the website, retireyourrisk.org, is still new, it has the potential to help with developing a retirement plan for a safe, carefree, and well-deserved retirement. The initiative also aims to help financial advisers to educate people on annuities and to shift the focus from asset accumulation to a more comprehensive lifelong plan. Colin Devine, Alliance for Lifetime Income advisor, told Forbes, “One objection advisors and consumers have had about annuities is they’re too damn complicated.”
Although many experts are welcoming this initiative, there are still some reservations about its potential success, given that a majority of people are usually skeptical about annuities. Therefore, it will take time and marketing for the initiative to get to its full potential. In the meantime, pre-retirees should be aware that there are less promoted annuities available, both immediate and long-term, that are much simpler than and less expensive than fixed indexed annuities. They are worth looking into as part of a smart retirement plan.
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