Consumers

Today’s consumers face a difficult challenge in preparing for retirement. We’re living longer, working later in life and having to take on the lion’s share of our own planning efforts. With so much information about financial products and strategies readily available online and in the media, it can be difficult to cut through the clutter and identify fact from fiction. It can also be difficult to create a plan that matches your risk tolerance, keeps up with significant life changes you experience over time, and makes certain your financial goals and objectives will be met.

Annuities can play a critical role in helping individuals successfully prepare for their golden years. In fact, according to a recent report from the LIMRA Secure Retirement Institute, 73% of annuity owners are confident about their retirement readiness compared to just 64% of those who don’t own an annuity.1 Yet, it is critical that factual, unbiased information about how these products work is made available to consumers for free. The Coalition has put together a sampling of materials below you can use to better understand how these products may fit into your portfolio. Then, we encourage you to seek help from a licensed, trusted professional in your area to solidify your plans for retirement.

1 LIMRA Secure Retirement Institute The Differences They Make: An Advisor, An Annuity or A Formal Plan in a Retiree’s Life, issued Feb. 20, 2018. Available online here.

Resources Provided by Sponsors and Coalition Members

Facts About Annuities: How Will I Get Income from My Annuity?
From NAFA’s “Facts About Annuities” series, this article provides consumers with an in-depth look at the three main ways they can receive income from an annuity: through withdrawal benefits, income riders also known as guaranteed lifetime withdrawal benefits (GLWBs) or guaranteed lifetime income benefits (GLIBs), and annuitization.

Facts About Annuities: How Can I Protect Against Fraud When Buying a Fixed Annuity?
From NAFA’s “Facts About Annuities” series, this article provides consumers with information on how fixed annuities work, as well as tips they can use to protect themselves from being scammed and ensure the annuity they purchase is suitable for their financial needs.

Facts About Annuities: Is My Annuity Protected If My Insurance Company Fails?
From NAFA’s “Facts About Annuities” series, this article helps consumers delineate the difference between the insurance protection offered to bank deposits by the Federal Deposit Insurance Corporation (FDIC) and the insurance protection for annuity deposits (premium) offered by state guaranty associations.

We LOVE Fixed Annuities
The distribution of reliable, factual information about annuities is critical in our efforts to educate industry professionals and consumers alike. As one of our most popular pieces, this flier highlights key statistics and features of these products that readers can use to increase their knowledge and awareness of fixed annuity benefits.

Fixed Indexed Annuities – Your Questions Answered
It’s important that you feel confident in your retirement planning process and have all the facts about fixed indexed annuities and how they work. Therefore, we’ve compiled some of the most common questions asked by consumers and provided answers in terms you can understand. Use this as a starting point for a conversation with your agent or advisor.

Building Retirement Confidence with Annuities
From providing lifetime income and preserving a portion of your hard-earned assets to giving you the opportunity to grow your retirement dollars, annuities can help you achieve the retirement you want. Find out how ownership of these powerful products is correlated with an increased level of retirement preparedness.

Should I Buy an Income Annuity?
When purchasing an income annuity, there can be a trade-off between the amount of income you receive versus the amount of estate you leave. This interactive analysis demonstrates this trade-off and discusses the potential benefits of allocating a portion of one’s retirement savings into an income annuity. Note: You will leave the AnnuRetirement site to access this tool directly from the provider.

What Is My Return with an Income Annuity?
The Internal Rate of Return (IRR) is a measurement typically used to evaluate the investment performance of a number of products like a bond or CD. Your IRR from an income annuity depends on how long you will live, which is unknown. This interactive analysis provides a way to view the return of an income annuity by graphing the IRR you will receive against your future longevity. Note: You will leave the AnnuRetirement site to access this tool directly from the provider.

Sequence of Return Risk: How It Can Dramatically Impact Your Retirement
Sequence of return risk is the risk that low or negative returns in the early years of retirement can dramatically impact one’s whole retirement picture in the future. If you don’t think it is real, imagine or talk to people who retired in 2000 or 2008. This piece illustrates the risk and advocates for one way, in particular to solve for this risk: Four Bucket Retirement Planning. Learn more and contact your advisor to prepare accordingly.

Hope Is Not a Strategy: 7 Strategic Moves for a More Secure Retirement
There are two significant risks in retirement: running out of money and, because of the fear of running out of money, never actually relaxing to enjoy the only retirement we will ever have. Retirement is not a dress rehearsal. It is a one-act play, and we need to take whatever steps are necessary so that our “golden years” really are golden. This paper outlines seven strategic moves that can assist you in achieving that all-important goal.

Be Out Living Your Life, Not Outliving Your Savings: Discover the Value of an Annuity
An annuity is a financial product that can be customized to give you lifetime income guarantees in retirement. In order to determine whether an annuity might be right for you, it’s important to understand the nuances of different annuity features and benefits. Read on for a simple summary of immediate, fixed, fixed index and variable annuities, as well as some of their riders and features, to better understand your planning options.

Immediate Annuities
An immediate annuity is the most basic type of annuity. You make one lump-sum contribution, and it’s converted into an ongoing, guaranteed stream of income for a specified period of time (as few as five years) or for a lifetime. Withdrawals must begin within a year. Learn more about these powerful products, including who might consider them, their benefits and what you should consider before purchasing.

Fixed Annuities
Fixed annuities allow you to lock in a rate of earning that, even over long periods of time, remains unaffected by market ups and downs. The principal investment and a specified interest rate are both guaranteed. Learn more about these powerful products, including who might consider them, their benefits and what you should consider before purchasing.

Fixed Index Annuities
A fixed index annuity gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity. Learn more about these powerful products, including who might consider them, their benefits and what you should consider before purchasing.

Variable Annuities
A variable annuity is, like other annuities, a long-term investment option that can grow tax-deferred. But its performance is driven by the ups and downs the market may experience. Learn more about these powerful products, including who might consider them, their benefits and what you should consider before purchasing.

Annuity Riders and Features
Riders are optional features that are available for some annuity products at an additional cost. They allow you to tailor your coverage and help protect what is most important to you. Access this flier for a quick summary of popular benefits that are available through today’s riders and other annuity features that can assist you in meeting your retirement planning goals and objectives.

5 Fixed Indexed Annuity Myths Busted!
According to the LIMRA Secure Retirement Institute, the more knowledge consumers have about annuities, the more they like them. To determine if a fixed indexed annuity is right for you, it’s important to have full knowledge of how they work and how they may fit into your overall retirement plan. Understanding some common misconceptions about these unique financial products is a step in that direction.

Fixed Indexed Annuities — A Powerful Combination of Protection and Potential  
We have a natural tendency to become more risk averse as we get older. But when it comes to growing your retirement nest egg, shifting from saving to safety may not be so easy. This piece illustrates why including a fixed indexed annuity in your portfolio may help ease the transition due to its unique combination of growth potential and protection from market risk.

The “What-Ifs” of Retirement
According to the LIMRA Secure Retirement Institute, the more knowledge consumers have about annuities, the more they like them. To determine if a fixed indexed annuity is right for you, it’s important to have full knowledge of how they work and how they may fit into your overall retirement plan. Understanding some common misconceptions about these unique financial products is a step in that direction.

Defusing the Top 4 Retirement Risks with a Fixed Indexed Annuity
Volatile markets, low interest rates and longer life expectancies are forcing people to re-evaluate the ways they save for retirement. Now more than ever, being armed with a strategy that considers each phase of the retirement journey can help you leverage more of your hard-earned dollars to create a “retirement paycheck” you can count on for the rest of your life. Read on to discover four common risks that come into play and how to address these risks for a financially secure retirement.

Leaving Behind a Legacy
According to the LIMRA Secure Retirement Institute, the more knowledge consumers have about annuities, the more they like them. To determine if a fixed indexed annuity is right for you, it’s important to have full knowledge of how they work and how they may fit into your overall retirement plan. Understanding some common misconceptions about these unique financial products is a step in that direction.