Retirement Security Using Annuities

In a recent Gallup survey, many Americans use annuities to gain greater retirement security. Annuities also allow for greater financial confidence in the future. Here are some interesting statistics from the Gallup survey:

• 90% of annuity owners believe that their annuities have improved their retirement security.

• 79% of annuity owners believe that their annuities make then feel more comfortable in difficult economic times.

• 83% of annuity owners believe that annuities help guard against living beyond their retirement savings.

• 81% of annuity owners believe that their annuities will help them avoid being a financial burden in their retirement years.

Additionally, the Gallup survey found that middle-class Americans are most likely to purchase annuities:

• 80% of households that buy annuities make less than $100,000 per year.

• 42% of households that buy annuities make less than $50,000 per year.

Said Deborah Winston of Committee of Annuity Insurers: “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.”

While many experts believe there are better ways to save for retirement than going the annuities route, if annuities give you confidence in your financial future, that alone may be good enough to make it a good option.

Happy in Retirement (Image: Flickr)