When is the Right Time to Buy Retirement Annuities?

You may be thinking, am I too old to buy retirement annuities? Conversely, you may wonder if you are too young to buy a retirement annuity. When is the best time in your life to buy retirement annuities? The answer is that there is no simple answer, just like there are no simple answers to questions like should I get married, when should I have a baby and so forth. The answer depends on your particular situation.

If you are still drawing considerable income, a retirement annuities may not be right for you. You may be better off buying a deferred annuity, to take advantage of tax deferred growth and a reasonable interest rate. Depending on how young you buy a deferred annuity, you could have three or four decades of tax deferred compounded growth adding up for you. One thing to consider, however, is that the IRS charges you an early withdrawal penalty of 10% if you decide that you need the money before age 59 ½.

Retirement annuities are perfect for those who have recently reached retirement, or are within a couple years of retiring. Social Security may fulfill some of your income needs, but it is difficult to survive on social security alone. Everyone knows the importance of contributing to a defined contribution plan, like a 401k, but what if you started too late? Retirement annuities can fill in gaps caused by low yields, poor savings accumulation and other retirement worries. Today’s longer lifetimes require a longer stream of income – retirement annuities are perfect for this, because a retirement annuity can guarantee income for life.

If you are still unsure if retirement annuities are right for you, contact the Annuity Specialists at 1-888-837-4226. They’ll be able to assess your situation and offer a personalized recommendation of what strategy would be a good fit for you. This assessment is free and you are under no obligation to buy.