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Fixed Annuities Can Increase Your Retirement Savings Safely: A Case StudyRetirement weighs heavily on Susan’s mind. She wonders if she has saved enough for retirement. Susan, a single 55-year old woman, hopes to retire by age 65, but can’t figure out if she is on the right track, savings-wise. She has saved a considerable amount in her company’s 401(k) plan, and luckily enough, she will have a company pension once she retires. She has also socked away $150,000 in certificates of deposit. After carefully considering her life expectancy and what she wants to do after retirement, Susan realizes that she needs to build her savings even more. After talking with a friend she trusts, Susan decides to use fixed annuities to help her reach her retirement savings goals. Susan is earning approximately 3.2% interest in her 12- month CD, which matures in two months. After researching fixed annuities, Susan decides to use her $150,000 to purchase a 10 year fixed annuity with a rate of 5.5%, guaranteed for 10 years. While Susan’s money was earning interest in the CD, she was required to pay taxes on the interest earnings each year. Now, with her money in a fixed annuity, Susan doesn’t have to worry about paying taxes until she begins making withdrawals or receiving payments, at least ten years down the road. 10 years later, Susan looks at her savings once again. At age 65, she is definitely better off financially - her fixed annuity is now worth approximately $256,000. At this point, Susan has the choice to exchange her balance for another fixed annuity, roll her annuity into an immediate annuity or withdraw her money completely. To ensure lifetime income, Susan decides to roll over her fixed annuity into an immediate annuity. Added to her pension income and her savings from her 401k, Susan feels that she is ready for retirement. Are fixed annuities right for you? If you think so, call the Annuity Specialists at 1-800-239-0356 for a free consultation. You can also visit AnnuityAdvantage.com to learn more about deferred fixed annuity products.
¹ First year yield/rate reflects fixed rate plus premium bonus or interest rate enhancement. Interest is based on current rates and subject to change without notice.Send email to
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