Many people put off savings and investment plans when they are young. They feel like they have plenty of time to save for retirement and that the savings will just accumulate over time without any effort on their part. The only problem with this is that savings won’t always grow at a steady rate. If you want guaranteed income in retirement, then you need to start planning today!
What is a guaranteed income plan?
A guaranteed income plan is a saving, investment, and insurance product that will provide you with a steady stream of monthly payments for the duration of your retirement.
The most common type is an annuity contract which pays out in annual installments over the course of 25 years or more. The amounts usually increase each year to match inflation rates.
Annuities may sound like too much risk and not enough reward, but that’s because many people don’t understand how they work or what other options are available to them.
Benefits to investing in a guaranteed income plan:
1) Alternate income source
If you ever need to retire early, your savings will likely be depleted from living off them alone. With a guaranteed income plan in place, the payments are scheduled and predictable so they can supplement what is left of your savings.
2) Maturity advantage
As savings mature, they could lose a significant amount of value due to inflation. With the guaranteed income plan, your payments will be fixed in the present day so you can continue reaching your savings goal and maximize its current worth.
The best time to start thinking about savings is now, as saving for retirement has never been harder than it is today.
3) Family security
The guaranteed income plan can be set up so that your savings will continue to benefit any family members who might need it in the future. Lack of savings has never been more important than now when saving for retirement has never been harder than ever before.
4) Flexible terms
You may be able to adjust your savings plan based on what you need now and in the future. The guaranteed income plan can provide peace of mind with savings that are fixed, so you can continue reaching your savings goal while maximizing your current worth. By taking income plans, you can get flexible terms that will match your goals.
5) Financial needs
The guaranteed income plan can be set up for your savings to make sure that any financial needs you have are met. The savings plans allow a person the peace of mind of knowing they will always have enough savings, as long as their goal is reached first.
Conclusion
A guaranteed income plan is a savings account that provides you with an assured monthly payout to help cover your financial obligations. It can also provide the opportunity for tax savings and increased savings if invested in stocks or bonds. Guaranteed income plans are designed so that, even if yields drop below zero in the future, signers still receive their monthly payments.
