Annuities boost retirement security, poll says
September 21, 2009 by Personal Liberty News Desk
According to a new Gallup survey, non-qualified annuities significantly increase the retirement security of middle-class Americans, and those whose portfolios include them have expressed greater financial confidence during the current recession.
Non-qualified annuities are purchased by investors individually, rather than through a qualified employer-sponsored retirement plan or individual retirement arrangement.
The study, conducted in conjunction with the Committee of Annuity Insurers (CAI), found that although many Americans believe they are not financially ready for retirement, a total of 91 percent of non-qualified annuity owners believe they have done a very good job of saving for old age.
In addition, nearly 79 percent say that annuities are safe and make them feel more secure in times of financial uncertainty.
"This survey demonstrates that these Americans consider their annuities the answer to both sides of the fundamental retirement challenge – a method to accumulate retirement savings and a vehicle to turn their savings into a steady retirement income stream that cannot be outlived," says Deborah Winston of the CAI.
The background to the survey specifies that 80 percent of non-qualified annuity owners have annual household incomes below $100,000. They are also more likely to be female (58 percent) than male (42 percent).
Annuities are an excellent base to a retirement plan. However, with the Government spending; chances are we will see high inflation. Much like the late 70′s and early 80′s. Many people have been frighten by the market…the key to all this is: diversification. An investment paying 5% today may seem incredible, until we see money markets at 15% and inflation higher….
Carl,
I am now meeting with people to secure a indexed annuity. I will be meeting with them this week to go over their recommendations, but from what I am hearing, if you pick an annuity that guarantees you will never lose the original amount invested, that will go sideways or remain level while the market tanks or is stagnant, but will go up when inflation does, you have the best of all worlds. I hope I am understanding this well enough to relay it to you.