One important retirement expense for retirees is immediate annuity insurance, which pays out a fixed amount of cash once a recipient reaches certain age limits. This might seem like an investment that doesn’t need any further explanation, but if you think about it carefully, retirees are already carrying their monthly expenses such as food, clothing, shelter, and health care, and they’ll probably increase these expenses significantly after reaching retirement age. And since the government covers the cost of retirees’ benefits, the monthly expenses will usually be less than they would be if they continued to pay their monthly installments on an interest-only or cash-only basis. Therefore, investing in immediate annuity insurance is a smart move for retirees looking to cover all their needs prior to reaching retirement age. Click here to learn more information.
Investing in Retirement Income
For many people, saving money for the unexpected is a concern. As such, they tend to invest in CD or money market accounts that grow only over time. Unfortunately, while this approach may be acceptable while you’re working, when you retire there will be no more interest income. So instead of trying to cope with the loss of monthly income, you should save for unexpected events and leave your CD investments alone until you’re ready to take advantage of them. Once you’re retired, you’ll likely have a number of concerns that require money, so you’ll want to make sure that you’re investing in retirement plans that will help you meet these needs.