Generating Enough Retirement Income

Quick Answer: Discover how to ensure sufficient retirement income with safe money alternatives. Learn more and plan your future today! Visit SafeMoney.com.

Do you have a dependable level of income for retirement? According to a new study, many seniors aren’t generating the retirement income they need. BankRate.com reports seniors in 47 states and the District of Columbia aren’t replacing enough of the income they earned in their working years.

The study found that at best, seniors are living off 60% of the income they had in their pre-retirement years. Financial experts believe retirees need at least 70% of their pre-retirement income. BankRate.com reports the national average to be 60.27%.

Why Does It Matter?

Of course there is more than one way to build a nest egg, including savings. That is certainly good news, given the study findings. According to BankRate.com, much of the income shortfall can be attributed to a lack of savings among seniors.

Notably, if seniors have a shortfall in retirement income, there are other strategies which experts recommend:

• Working longer
• Delaying Social Security claiming until full retirement age or later
• Getting rid of debt
• Cutting back on spending levels
• Moving to an area with lower cost-of-living

However, not all of these “delay” or “reduction” strategies will be options for everyone. It does underscore the importance of making proper retirement decisions. For income planning purposes, a critical juncture lies in the 10 years before people retire and 10 years into their retirement. Retirement decisions made in this period can have a critical impact on the rest of someone’s retirement lifetime.

Financial Security with Guaranteed Income

Another strategy to consider is use of annuities. They can be used to generate a guaranteed income stream for as long as someone lives. Annuities are increasingly being used to supplement income from Social Security, pensions, and other sources.

What about people with healthy life savings? Annuities could be used to cover certain monthly expenses such as living costs. This could free up other sources of income and offer seniors greater financial flexibility.

Avoid the Alternatives

Without a set plan, a few undesirable outcomes could arise. Retirement money could be spent too quickly, seniors could outlive their retirement assets, or there may be unnecessary cutbacks in retirees’ standard of living. When used properly, annuities allow retirees and pre-retirees to avoid these possibilities.

There are many different types of annuities, and each comes with different features and benefits. Suitability depends on a number of variables, including personal circumstances, needs, and objectives. If you are interested in seeing an annuity may be a good addition to your retirement income strategy, we would be glad to help you.

Use our Find a Licensed Advisor section to connect directly with an independent financial professional, and to request a personal strategy session to discuss your needs and goals. And should you have any questions or concerns, call 877.476.9723.

Frequently Asked Questions About are you generating enough income in retirement

What are safe money alternatives for generating retirement income?

Safe money alternatives include fixed annuities, treasury securities, and high-yield savings accounts. These options provide a reliable income stream while minimizing the risk of losing your principal. They are particularly appealing for retirees seeking stability in their financial planning.

How can I calculate my retirement income needs?

To calculate your retirement income needs, start by estimating your monthly expenses, including housing, healthcare, and leisure activities. Then, consider your expected income sources, such as Social Security, pensions, and any income from safe money alternatives. This will help you determine if you need to adjust your savings or investment strategy.

What is the role of fixed annuities in retirement income planning?

Fixed annuities can play a crucial role in retirement income planning by providing guaranteed payments over a specified period or for life. This predictability helps retirees manage their budgets and ensures they won't outlive their savings. Additionally, fixed annuities can be a safe money alternative that protects against market volatility.

How can I diversify my retirement income sources?

Diversifying your retirement income sources can involve a mix of Social Security benefits, pension plans, investment income from stocks, and safe money alternatives like fixed annuities. This strategy helps mitigate risks associated with relying on a single source of income. By balancing these options, you can create a more resilient financial plan for your retirement years.

Take the next step, run the numbers with our free retirement calculators.