By Jim Poolman, Executive Director
Financial forecasters and retirement experts have warned about the looming retirement crisis in America and one thing is abundantly clear: many Americans are not prioritizing their retirement savings.
According to a recent study by Fidelity Investments, only 45 percent of Baby Boomers are saving enough to cover their basic retirement costs, including just housing, health care and food.
At the median, Boomers will only be able to cover 81 percent of their retirement costs, according to an article recently published by Market Watch. With many other financial obligations and difficult economic times, retirement saving is often delayed. But the need for adequate retirement savings becoming increasingly important as life expectancy rises. The lack of sufficient savings for Baby Boomers could mean delaying retirement, working during retirement and drastically changing their lifestyle.
With the volatility of the stock market and the decreasing number of companies offering pension plans, the importance of having a diversified financial plan is more important than ever. Fixed indexed annuities can play an important role in solidifying your retirement plan by offering peace of mind through guaranteed income. In addition to mitigating risk in down markets, fixed indexed annuities offer the opportunity to earn additional interest when the markets are doing well. Check out our video on the basics of fixed indexed annuities for more information on how this product can fit into your plan.
To see if you are saving sufficient funds for retirement use one of our retirement calculators.