For the millions of boomers moving into their golden years, many are quickly discovering the phrase “this isn’t your parents’ retirement” couldn’t be truer. Traditional retirement plans were often built around the three-legged stool concept, supported by pensions, Social Security Income and savings. Yet today, those legs are wobbly at best. Defined benefit plans have long since been replaced with defined contribution plans. The future of Social Security is uncertain at best. And according to LIMRA, four out of five American workers are saving less than 10 percent of their income for retirement.
Helping clients overcome these obstacles is clearly a challenge. But that’s not all you, as the agent or advisor, must consider. To compound the retirement problem, clients are living longer and therefore having to make their money last in a way they’ve never had to before. With lengthening retirement years comes the question of inflation. Will it increase in the future? How much might it go up in 10, 20 or even 30 years? If it does increase, it could make the guaranteed income streams you’re working to provide clients less valuable because their monies might not go as far.
To address how a potential rise in inflation may impact your clients’ futures, we want to remind you to consider the difference between real income and nominal income. We’ve detailed this concept and how it relates to the current planning environment in a feature of the Senior Market Advisor magazine’s March edition. We’re also pleased to be one of the exclusive distributors of Annexus product, which offers an innovative Inflation-Indexed Income Option to help combat this lurking threat to a secure retirement future. Take a few moments to read the article linked above, and then contact your Annuity Sales Consultant for details about how this unique product might be a fit for your clients. Or, Annexus Advisor Inflation Impact Retirement that can be used point-of-sale on this concept now.
FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 12696 – 2013/2/28
The BalancedAllocation Lifetime Income Rider™ [BAAIR2 (10/11)] or state variation, an optional rider for which a charge is deducted, is issued by Aviva Life and Annuity Company, West Des Moines, IA and is not available without the purchase of the BalancedAllocation Annuity® [BAA8 (09/09) and BAA12 (09/09)] or state variation. Product features, limitations and availability vary by state. See the Disclosure Summary for details. Interest credited will be equal to the combined growth in the value of each allocation, less charges for any optional riders. Guaranteed lifetime income available through annuitization or the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.