Preparing to get to the finish line can be more difficult than it appears. The reality is that while people generally have put away some money for retirement, the majority of people do not have enough money set aside to live comfortably.
Retirement statistics* can be a bit surprising:
- 36% of Americans do not have any money allotted for retirement
- 80% of people ages 30-54 do not believe that they have enough money put away for retirement.per year of retirement.
- 50-year-olds have set aside an average of $43,797. With the average retirement length being 18 years, that works out to about $2433 per year.
- 63% of people who started working at age 25 are dependent on their Social Security, friends, relatives, or charity by the time that they reach age 65.
- The average total cost for a couple over 65 to pay for medical treatment over a 20-year span is $215,000.
- Only 4% of people who started working at age 25 will have adequate money for retirement by the time that they reach 65.
The moral of the story is simple; start thinking about your financial options early! A fixed annuity is a great way to start building up that retirement fund. Unlike other options, fixed annuities provide a tax-deferred, constant growth rate. This means that even if the market takes a turn for the worse, your assets are protected with a steady growth from the time that the annuity was taken out. Safety from market fluctuations is a major advantage of annuities, because they generate a consistent value, while the rest of the market may fall around it.
Another major advantage of an annuity is the ability to move money according to a plan that meets your needs. If you're just starting an annuity, but have a large amount that you want to place in annuity or are looking to roll-over a 401(k), a single premium annuity may be a better fit for your needs. You can take a large portion of an asset, put it into an annuity at a young age, and watch it grow as you approach retirement. Annuities offer many flexible payout options, as well.
If you're wondering how much you will need for retirement, visit our website and check out our retirement calculator. For information about Catholic Financial Life annuities, click here. If you would like to discuss your retirement options or have specific questions, please don't hesitate to work with a Catholic Financial Life Advisor in your area.
Withdrawing money from an annuity prior to age 59 1/2 may be subject to a 10% penalty on any premature distribution. Please check with a qualified tax advisor for additional information. Nothing contained herein should be construed as solicitation for insurance, financial products or annuity products in any state in which Catholic Financial Life is not licensed.