-- Baby Boomers heading into retirement are aware of how important a guaranteed monthly income will be once they stop working. However, 84 percent of them have no plan in place to guarantee that goal will be met.
According to a recent survey on attitudes toward lifetime income by TIAA-CREF, a majority of baby boomers with a retirement plan already in place may still be missing out on lifetime income options if they haven’t been proactive in making plans for their retirement savings. The survey found, for example, that 44 percent of boomers questioned were unsure if receiving a monthly income once they retire is actually an option in their plan.
More telling, only 31 percent claimed to be actively seeking advice on converting their retirement savings into lifetime income, which means a vast number of retirees are probably in for a rude awakening after the last paycheck is spent.
Financial Consultant Cathy Mendell, founder and President of Elevation Capital Strategies in Bend, Oregon says that most Americans understand the importance of receiving guaranteed monthly income in retirement. Even still, Mendell believes a serious disconnect exists among the country’s aging population when it comes to ensuring a post-retirement income stream that provides a comfortable standard of living—and making sure that income stream is one they can’t outlive.
“We work with pre-retirees and people already in retirement who want a comprehensive plan for their assets with the goal of delivering a sustainable, secure, relaxed retirement,” Mendell says. “The fact that important financial basics like annuities are often unknown or misunderstood among folks heading into retirement is a problem we’re working to correct, since they are the only option for generating retirement income that cannot be outlived.”
Conducted by an independent research firm, the TIAA-CREF 2015 Lifetime Income Survey polled 1,000 adults nationwide at random to assess their outlook on lifetime income and how it applies to their retirement plans.
Most alarming, the survey determined that Americans are not saving any money for their retirement at an increasing rate (29 percent, up from 21 percent in 2014) despite the fact that 46 percent claim they are fearful that they will run out of money after they retire. And although nearly half of the survey’s respondents said they would be willing to commit a portion of savings to an investment product such as an annuity that would produce a monthly income, only one-third of Americans polled said they are familiar with annuities. Twenty-nine percent said they are planning to purchase an annuity or have already done so.
Working one-on-one with a financial advisor is a critical step toward securing long-term financial goals with no unexpected shortfalls once the paychecks stop coming in, according to Mendell.
Contact Info:
Name: Cathy Mendell
Email: Send Email
Organization: Elevation Capital Strategies
Phone: (541) 728-0321
Website: http://www.elevationcapitalstrategies.com
Source URL: http://councilofeliteadvisors.com/liftmedia
Release ID: 75309
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