![]() ![]() “Research shows that people who buy annuities tend to live longer – and not just because they are the kind of people that have the money to buy annuities to start with. I was first alerted to this when I was listening to a Freakonomics podcast titled “How to Live Longer.” They referenced a University of Chicago study that found those who purchased a Lifetime Income Annuity tended to live longer. I want to be able to enjoy my retirement regardless of interest rates, market conditions or politics.Īs far as living longer, believe it or not there has been significant research around this as well. This is one of the reasons that retirees who’ve incorporated income annuities into their retirement planning report higher levels of satisfaction.” They went on to say, “Income annuities are less expensive and safer for risk-averse retirees whose primary goal is income security in retirement.”Īs a baby boomer myself, this resonates with me. They found that happiness is tied directly to confidence, “Certainty provides confidence. They recently wrote a white paper “It’s More than Money.” Michael Finke and Wade Pfau are two of the smartest PhDs who have studied retirement. And this truth doesn’t change just because someone retires.” They also found, “When clients know how much income they will receive every month for life, they know what kind of housing and activities they can afford, allowing them to choose the lifestyle that makes them happiest.” The American College recently wrote “How Annuities Can Increase Happiness in Retirement.” They found, “A stable income is often the difference between living well and living in a state of perpetual worry. Towers Watson wrote a whole white paper titled “Annuities and Retirement Happiness.” They found that ALL retirees were happier if they had a source of guaranteed lifetime income. Their headline read, “Lifetime Income Stream Key to Retirement Happiness: A new study in a land of grumps reveals that retirees with a guaranteed lifetime income stream can find true happiness.” They went on to say, “Securing at least a base level of lifetime income should be every retiree’s priority - at least if they want to live happily ever after.” Time magazine found the same thing in Great Britain. How would your retirement be affected if our markets crashed and stayed down for an extended period of time? The Japanese stock market has been down for over 30 years, the European stock market has been down for over 20 years. Americans tend to underestimate market risk. See, assets tend to make people miserable in retirement. Now let me ask you: Who are the most miserable people you know? Many of the them have plenty of assets, but they are losing money in oil, gas, stocks and bitcoin. It’s people with pensions! Happiness in retirement is based almost 100% on guaranteed lifetime income, not assets. Let me ask you a question: Who are the happiest people you know in retirement? I’ll bet it’s those who are retired from the military, the government, teachers and firefighters. I still remember The Wall Street Journal headline “The Secret to a Happier Retirement is Friends, Neighbors and a Fixed Annuity.” The article went on to say that the happiest people in retirement were those who were surrounded by friends and had sources of guaranteed lifetime income. Research shows that people with a guaranteed lifetime income source tend to be happier and live longer. This has been researched by PhD’s around the world and the answers may surprise you. I think everyone dreams of a retirement where they can live a long and happy life. ![]()
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