In a recent study, 58% of Americans said it’s “getting harder to prepare for retirement.” 51% cited fewer pensions as a contributing factor to this problem.¹

With pension offerings on the decline, you may want to consider a fixed income component to your financial strategy. In short, adding an annuity may be an opportunity to help ensure a portion of your retirement income will be guaranteed.*

What is an annuity?

An annuity is a contract you purchase from an insurance company. For the premium you pay, you receive certain fixed and/or variable interest crediting options able to compound tax deferred until withdrawn. When you are ready to receive income distributions, this vehicle offers a variety of guaranteed payout options — some even for life.

Most annuities have provisions that allow you to withdraw a percentage of the value of the contract each year up to a certain limit. However, withdrawals will reduce the contract value and the value of any protected benefits. Excess withdrawals above the restricted limit typically incur “surrender charges” within the first five to 15 years of the contract. Because they are designed as a long-term retirement income vehicle, annuity withdrawals made before age 59 ½ are subject to a 10 percent penalty fee, and all withdrawals may be subject to income taxes.

¹ National Institute on Retirement Security. February 2021. Page 7. "Retirement Insecurity 2021: Americans' Views of Retirement." https://www.nirsonline.org/wp-content/uploads/2021/02/FINAL-Retirement-Insecurity-2021-.pdf. Accessed March 7, 2023.

Strategies for Financial Independence

It is important to feel you have control over your future. At Saoud Financial, we offer our experience and knowledge to design a specific plan of action that can help you work toward your financial independence.

To schedule a time to discuss your financial future and the possible role of insurance products in your financial strategy, contact us at jelsey@SaoudFinancial.com or call us at 586.225.7171 today!

All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to guarantees or lifetime income generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.