When retirement expenses are higher than planned, they can eat away at even the most carefully planned retirement accumulation and income strategy. In a recent consumer study, Genworth found 64% of pre-retirees expect their expenses to decrease in retirement. Reality: 52% of those already retired reported their expenses either stayed flat or even increased. How will retirement impact your living expenses? Calculate inflation's impact on your retirement income needs. See the full Future of Retirement Income Study.
52% of people told us their "expenses stayed the same or even increased during retirement."
Source: The Future of Retirement Income Study, Genworth, October 2013
Inflation is important to consider too: It can reduce the purchasing power of your retirement income by increasing the future costs of goods and services. See the impact inflation has on your purchasing power.
So how can you protect your retirement savings?
When included as part of your overall retirement strategy, deferred annuities can be part of the solution.
Fixed annuities can help offset the erosion powers of inflation via interest credited that can potentially exceed traditional, conservative financial products. Annuities also can increase your overall growth through the power of tax deferral, lessening taxes paid in the near-term.
Fixed annuities protect your contract value from market loss, a valuable benefit that many other financial products cannot provide. So how does a fixed annuity stack up against many other conservative financial products? Find out here.