‘Guaranteed income’ preferred over ‘annuities’
August 24, 2021 by Emile Hallez
Annuities have existed as a concept for thousands of years, but they aren’t used very often by today’s retirees — and part of that has to do with their name.
Wink’s Note: You know- I see these “survey results” and “research findings” about once a year.
Everyone should know by now that if you say the “A” word, people are going to run; but if you mentioned “guaranteed income,” prospects say, “tell me more!”
Earnestly, I’ve been working on rebranding the naughty step-child of the life insurance industry for over two decades. We need a concerted educational effort to just help people understand that what they think they know about annuities is likely wrong, and then to actually teach them what an annuity is.
Annuities nearly always pay a benefit to beneficiaries on death. Annuities almost always let you access as much as 10% of your money each year, without surrender penalties. Annuities pay a one-time commission that cannot be fairly compared to asset management fees that are paid every year.
An annuity is the pension you create on your own. Social security is an annuity. Publisher’s Clearinghouse uses annuities for their winnings. Annuities provide a guaranteed paycheck every month of your life, until the day that you die, even if that happens at age 150.
We have alot of work to do! -sjm