Guaranteed Income for Life: What Does That Mean?

Retirement Income

Guaranteed Income for Life: What Does That Mean?

Posted by COTO Insurance & Financial Services
3 years ago | July 23, 2018

Pension plans are becoming less common these days, but you can still create your own guaranteed income for life.

When you hear that phrase, “guaranteed income for life”, you might wonder what it actually means. Simply put, it means that you can create your own pension plan using your own money. We often accomplish this goal by utilizing an annuity. You put your own money into the annuity contract, and then you are guaranteed payments for that contract for the rest of your life.

There are good annuities and bad annuities, depending upon your needs. So there’s no “one size fits all” plan that will work just right for everybody!

Here’s one thing we do know: Your annuity should have an inflation rider, so that your income will keep pace with inflation. The last thing you want is for your retirement income to one day fall short of your needs. In that situation retirees sometimes end up forced to go back to work, well into their seventies or even eighties. And who wants to do that?

We can help you compare annuity plans, and choose one that best suits your needs, so that never has to happen. Give us a call for professional advice, and we will show you how to create your own guaranteed income for life.

 

 

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