An Annuity: Should You Get It?

An Annuity: Should You Get It? 

By Anna Neiger, InsuranceAgents.com Writing Team

Deciding If An Annuity Is Right For You

An annuity isn’t for everyone, just like not everyone likes Human League or cocktails or waiting tables or… The point is an annuity isn’t the right choice for everyone. Needing an annuity depends on how old (or young) you are, the size of your assets, and how investment-savvy you are. And just like there isn’t one type of person who needs an annuity, there isn’t one universal type of annuity that is right for people who need them.

If you’re unsure whether or not you should have an annuity, keep reading! If you want to start comparing rates, use our quick online form to compare up to 5 offers.

Three Types Of People Most Likely To Benefit From An Annuity

• The Boomers. An annuity will help couples in their mid-50s manage their money after retirement, will help ease the taxes on their retirement fund and can ease their minds about overspending after retirement.
• The Ladies. On average, women live longer than men, and therefore have a “longevity risk,” which means they are more likely to outlive their assets. An annuity will help maintain your money after you retire.
• The Middle Class. The middle class, who aren’t rich but definitely aren’t poor, have enough assets or “surplus wealth” for an annuity. This will insure that there is enough money to live on after retirement without scraping the bottom of the barrel.

Four Types Of People Who Most Likely Won’t Benefit From An Annuity

• The Youth. It doesn’t make much sense for a single 20-something to take out an annuity because you haven’t amassed many assets or wealth and you have a long way to go until retirement
• The Very Old. On the other hand, you won’t benefit much from an annuity if you’re in your 80s or 90s; it’ll be much harder to take out an annuity in the first place, as you may be too old to qualify.
• The Very Rich. If you’re rich enough (like Bill Gates? That man probably does NOT need an annuity), you’ll basically never run out of money unless you try really, really, really hard, so you don’t need to worry about where your money will come from after you retire.
• The Very Poor. In this case, you simply don’t have enough assets or wealth to make an annuity beneficial.

Of course, there are always exceptions to every rule. This is why you should find a reputable life insurance agent who can talk with you in depth about annuities and will help you decide whether or not an annuity would be truly beneficial for you. Using our quick online forms you can compare up to 5 quotes on an annuity.

Published: Friday 14th August 2009