麻豆传媒

How 5 Americans are building a secure retirement

Planning for retirement doesn鈥檛 end once you retire. Even after they stop working, many people worry about inflation, market performance and other factors that could erode their savings. And they worry above all whether they鈥檒l have enough to provide the lifestyle they want over what could be a decades-long retirement.

鈥溾�楬ow much will I need?鈥� has always been a big question for retirees,鈥� says Rod Mims, senior vice president and national sales manager at 麻豆传媒, a leading provider of annuities鈥攊nsurance products that can provide a guaranteed future income stream while generating tax-deferred growth. 鈥淎s you get closer to retirement, it becomes all the more important to work with a financial professional to protect all you鈥檝e worked hard to save from market volatility and other risks.鈥� Having a well-thought-out plan with the right solutions in place can help people face the unknowns of retirement with far more confidence and peace of mind.

To understand how people are approaching their planning, we spoke with five people at various stages of life who shared how they鈥檙e managing risk and taking steps to fulfill their retirement goals and dreams.

Karin and Rob: Planning for a confident future

Rob and Karin, who live just outside of Chicago and are both in their mid-50s, are still working. Karin is in sales for an environmental monitoring and compliance company, while Rob is self-employed doing various jobs, including health care consulting and managing rental properties. In their free time, they enjoy playing pickleball and paddle tennis with friends, downhill skiing, boating on Lake Michigan and spending time with their two grown children.

In recent years, the couple has been thinking more about their retirement plans. 鈥淚鈥檇 love to retire in the next four or five years and do some traveling,鈥� Karin says. 鈥淎fter that, I see us settling in two different places鈥攐ne in the winter and another in the summer.鈥�

鈥淲e鈥檙e sort of looking at a younger version of the snowbird lifestyle,鈥� Rob adds. 鈥淲e鈥檙e staying flexible on locations at this point, but we do own a rental property in North Carolina.鈥�

The couple has a diversified investment portfolio that a financial professional manages. About 10 years ago, he recommended they convert a life insurance policy into a deferred annuity. The advantage, Rob says, is the annuity is a more efficient way to accumulate money that can eventually be turned into a steady income stream. The couple sees it as a security net鈥攂olstering their income so they can have the retirement lifestyle they want while protecting against risks such as a significant market downturn. It also helps ensure they won鈥檛 have to worry about having enough saved to pay for their future needs and goals.

鈥淥ur goal is to truly settle in, enjoy retirement and not worry about having to work again,鈥� Rob says. 鈥淏ut as you plan for retirement, you can start to worry about factors that are out of your control. The annuity is a great tool for helping take that anxiety away.鈥�

Jessica: Eyeing an earlier retirement

Having worked as a retail pharmacist for the past 25 years, Jessica, age 50, of southern Ohio, can now see the light at the end of the tunnel. She plans to retire when she turns 62 and start taking Social Security payments.

She wants to retire on the earlier side of the typical age, to give her more time to focus on her passions鈥攎aking crafts that she sells at fairs and traveling with her husband鈥攁nd ensure she has ample years to spend doing the things she enjoys most.

鈥淲hile I love my job, it鈥檚 stressful,鈥� she says. 鈥淚鈥檓 looking forward to when I can spend my time doing what I want.鈥�

Between her own retirement accounts and her husband鈥檚 expected pension once he retires from his job as a police officer, she feels they will generate enough income to sustain them through retirement. 鈥淲e don鈥檛 have to live this glamorous life in retirement,鈥� she says.

Although lavishness isn鈥檛 her goal, she does want to create an additional income stream in retirement鈥攕imilar to the pension her husband will get鈥攖o help ease any worry about their savings running out.

When she turns 59 陆 and can take penalty-free withdrawals from her 401(k), Jessica plans to look into transferring some of those assets into an annuity that can create a guaranteed stream of income for life. 鈥淚 love that idea of having a steady, less-volatile income source,鈥� she says, 鈥渁nd I think that would help if I ever need to enter a long-term care facility later in life. I wouldn鈥檛 have to worry about having an income stream to help pay for that.鈥�

Donna: Looking toward a carefree retirement

In 2021, Donna, a public school teacher, and her husband, a retired firefighter, moved back to New York鈥檚 Westchester County from New Mexico, where she had taught full time for 15 years. Donna, now age 61, has recently been teaching acting part time in an after-school program and taking on small acting gigs. She plans to fully stop working within five years.

鈥淚鈥檝e always built my retirement planning around the idea that I don鈥檛 like to say no to things,鈥� she says. 鈥淚 like to do what I want to do.鈥�

Donna says she looks forward to a retirement where she and her husband can continue to enjoy their favorite activities, such as traveling, without worrying about having to rein in their budget to compensate.

鈥淪ay we do something exorbitant one year鈥攍ike travel around the world. I don鈥檛 want to spend the next year thinking, 鈥極h no, now I have to go to the doctor and pay a copay,鈥欌�� she says. 鈥淭hat鈥檚 what defines comfort for me鈥攖hat we can do pretty much what we choose without stressing out that we might have put our finances at risk in the long term.鈥�

After her first marriage ended, 30 years ago, Donna started working with financial professionals to build a diversified investment portfolio. Shortly after setting up the portfolio, the professionals recommended she purchase an annuity, which would allow for tax-deferred growth until she started taking payouts, providing a steady, guaranteed income stream that lasts throughout her lifetime.

Along with their individual Social Security payouts and a pension from her husband鈥檚 former job, the annuity payments help create a stronger safety net, she says. Her husband started taking Social Security several years ago, while she plans to hold off for at least a few years.

Donna says having the annuity adds assurance they鈥檒l be able to cover expenses more easily in retirement. 鈥淭here鈥檚 something very comforting about getting a monthly check,鈥� she says. 鈥淲e鈥檙e so used to getting paychecks while we鈥檙e working, so something that delivers that same experience in retirement helps us feel much more secure.鈥�

Craig: Securing protection during retirement

Craig, a Queens, New York, native, age 64, worked many years as an accountant and then as a self-employed consultant for multinational corporations. About five years ago, he took on one last consulting gig that required travel to Malaysia, India and South Africa鈥攁nd then decided it was time to call it quits.

鈥淚 was away from home 11 months of the year,鈥� he says. 鈥淚 was like, 鈥極K, this is it. I鈥檓 done.鈥欌��

Since retiring, he鈥檚 stayed busy by taking trips with friends, going to the theater, spending time with family and running to stay fit. He also has small side jobs that produce income.

To cover his retirement expenses, he has a 401(k) with savings from past employers, a SEP-IRA retirement plan and a brokerage account with high-dividend-paying stocks. He plans to delay taking Social Security until age 70 so he can get the highest monthly benefit.

Two decades ago, he started a spreadsheet to help him determine how much income he can draw from his savings every year in retirement鈥攚ith the goal of his assets lasting until age 101. 鈥淚f I live to 101, I die penniless,鈥� he says half-jokingly. 鈥淏ut in 2008, when the market tanked, my spreadsheet told me I had to die at age 86, so that one downturn cost me 15 years of future life income.鈥�

Eighteen years ago, he decided to get an annuity that would provide a guaranteed annual return and a reliable income stream whenever he decided to start taking payouts. He expects to start withdrawing from it next year. That payout will last as long as he lives鈥攅ven beyond 101鈥攈elping to protect him in case of cash shortfalls and other things that could crimp his busy lifestyle.

鈥淭he annuity, together with my other passive sources of income, will be enough to cover my living expenses, no matter what else happens,鈥� he says, adding, 鈥淚t鈥檚 given me this incredible comfort that I鈥檒l be able to afford my lifestyle in what I expect will be a very long life.鈥�

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Under current tax law, the Internal Revenue Code already provides tax deferral to qualified money, so there is no additional tax benefit obtained by funding a qualified contract, such as an IRA, with an annuity; consider the other benefits provided by an annuity, such as lifetime income and a Death Benefit.

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This material is a general description intended for informational and educational purposes. 麻豆传媒 Annuity and Life Company (61689), headquartered in West Des Moines, Iowa, and issuing annuities in 49 states (excluding NY) and in D.C., and 麻豆传媒 Annuity & Life Assurance Company of New York (68039), headquartered in Pearl River, New York, and issuing annuities in New York, are not undertaking to provide investment advice for any individual or in any individual situation, and therefore nothing in this should be read as investment advice. Please reach out to your financial professional if you have any questions about 麻豆传媒 products or their features.

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