Many Americans are finding themselves in a position where they “want” to retire early or “have” to retire early. First off, the old concept of retiring at age 65 is not holding true for many. Also, age 65 is no longer the time when you get full retirement benefits. That age has increased to over age 66 depending on when you were born. But, there are many factors that determine when a person wants to start taking benefits.
We know that the amount of monthly payments increase by about 8% per year if one is able to wait until age 70. But, health issues can make early retirement unavoidable. Many people can’t keep their jobs till age 70. Some people might have lost their jobs and have to start taking payments prior to full social security and start around age 62.
Suffice it to say that here are many factors that weigh into an individual’s decision. But, one thing remains true… they need an income that can support their lifestyles. And, we in the insured products business have options and solutions. Let’s look at some…
We are all familiar with the split annuity concept. A person retires prior to receiving social security and doesn’t want to start payments. They may be waiting for the increased amount at age 70. So, we provide a SPIA (single premium immediate annuity) to fill the gap prior to the Social Security benefits kicking in. Maybe we can provide for them an amount that would be equal to a reduced Social Security benefit. The client might be concerned about needing even more money at age 70.
So, today the client can purchase a fixed index annuity (FIA) with an income rider. Let the account grow, and start receiving the payouts at age 70 as well. There are many solutions in the fixed arena. I think it would be a smart idea to be speaking with our younger pre-retirees or post-retirees and show them what we can do. Need help with the plan and illustrations? Give one of our marketers a call… that is what we are here for.
We know that the amount of monthly payments increase by about 8% per year if one is able to wait until age 70. But, health issues can make early retirement unavoidable. Many people can’t keep their jobs till age 70. Some people might have lost their jobs and have to start taking payments prior to full social security and start around age 62.
Suffice it to say that here are many factors that weigh into an individual’s decision. But, one thing remains true… they need an income that can support their lifestyles. And, we in the insured products business have options and solutions. Let’s look at some…
We are all familiar with the split annuity concept. A person retires prior to receiving social security and doesn’t want to start payments. They may be waiting for the increased amount at age 70. So, we provide a SPIA (single premium immediate annuity) to fill the gap prior to the Social Security benefits kicking in. Maybe we can provide for them an amount that would be equal to a reduced Social Security benefit. The client might be concerned about needing even more money at age 70.
So, today the client can purchase a fixed index annuity (FIA) with an income rider. Let the account grow, and start receiving the payouts at age 70 as well. There are many solutions in the fixed arena. I think it would be a smart idea to be speaking with our younger pre-retirees or post-retirees and show them what we can do. Need help with the plan and illustrations? Give one of our marketers a call… that is what we are here for.
 | Until next time… good selling! Raymond J. Ohlson, CLU, CRC, LACP President and CEO The Ohlson Group 1-877-844-0900 |
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