There are a lot of things to consider before you retire. One thing that some people forget to plan for, however, is their health care in retirement. Many people assume that Medicare will cover all their health care expenses once they retire. The reality is that it doesn’t.
According to Fidelity, the average retired couple typically has to pay $260,000 on health care expenses.1 That figure includes things like copays, deductibles, premiums and more. By planning ahead, you can help to avoid draining your retirement funds to pay for health care expenses. Act now to develop a sound health care funding strategy, and you can save your retirement money for things you want to do rather than spend it on health care expenses.
Annuities are offered in a wide range of different types, all of which serve different purposes. Deferred annuities offer a chance for growth and accumulation, often with downside protection. Immediate annuities don’t provide growth or liquidity, but they usually generate a guaranteed* lifetime income stream.
Have you hesitated to explore an annuity as part of your retirement planning? If so, you could be missing out on a tool that is helpful for generating income and managing downside risk. While an annuity isn’t appropriate for everyone, it can be useful in the right situations.
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