Return of Money Trumps Return on Money
Gallup March 31,2014
“United States investors are generally a cautious group when thinking about risk versus return options for their retirement savings.”
Nearly 2 thirds (66%) of investors surveyed by Gallup said a guarantee that their initial investment was secure even if that meant lower growth potential; outranked having high growth potential that carried some risk of losing their initial investment.
The Takeaway – In 2013 – Interest guarantees and income guarantees increased annuity sales 5% higher, to 230,100,000,000 industry wide. According to LIMRA, 2/24/2014
Retirees who take income from an annuity are happier than those who adopt a different approach according to “Annuities and Retirement Happiness” (September 2012) The report from consultants Towers Watson, concluded-
“…while workers and retirees might have very different needs, almost all of them can benefits from annuitizing some portion of their of their retirement income (beyond Social Security).
Business partners? Yes. Father and sons? Yes. Charitable donors and donees? Yes. Non-spousal joint annuitant structuring provides added flexibility for income solutions.