Because Your Longevity Risk is Increasing, That’s Why!

With apologies to our younger readers, remember the 1977 Dannon commercial that linked the high centenarian population of then-Soviet Georgia to eating yogurt?

What a difference a generation makes!

When Congress passed the Social Security Act in 1935, average life expectancy at birth was only 62.81 years.  By 2050, that number is projected to rise to 83.86 according to data360.org which is a small group of non-partisan, “just the facts, ma’am” folks who like crunching numbers.

Further, in its article last November entitled “Who’s Old?  More turn 90 in U.S., redefining aging,” USAToday, citing research from the National Institute on Aging, reports that there are currently nearly 2,000,000 Americans aged 90 or older, up threefold from just thirty years ago.

So what does this mean for you and me?

For those without pensions, it means that following the conventional wisdom of investing retirement funds and withdrawing at a fixed rate, your chances of running out of money have just gone up.

Put another way, you need to either:

Hope you don’t live as long
Save a bunch more money
Re-budget to a lower withdrawal rate
Hope for higher returns

Or, take the easier way out and:

Buy an annuity!

More specifically, buy an annuity that provides guaranteed income for life.  Effectively, you can create your own “personal pension” that assures income you can never outlive.

And while rolling over your 401(k) proceeds into a lifetime annuity is a pretty good idea, those anticipating personal injury settlements have a unique opportunity to address their own longevity risk with guaranteed future cash flows that are 100% income tax-free!

Every week we’re helping people secure their futures with income tax-free structured settlements and pension rollovers.  It just makes so much sense for so many people.

Plus, many of the smartest attorneys I know routinely structure their attorney fees to address their own longevity risk on a  tax-deferred basis and are happier for their decisions.

We are passionate about this particular topic having found a plethora of evidence that leaves us little choice but to conclude that lifetime annuities are the absolute best way to ensure that any long life you live is a financially secure one.

For further reading, we hope you’ll find some of our past newsletters helpful:

Live Longer . . . Buy Annuities

A Paycheck for Life

Young Workers:  Make Mine Guaranteed

Income Floor Strategy for Retirement

Annuities Are The New Black

So here’s to a long life for you and yours!  Please let us know how we can help you create your own “personal pension.”

We’ll be here eating yogurt waiting for your call.