Guarantee. Is there anything truly like that any more? And if there is one, what is the cost of obtaining that guarantee? And are we willing to pay the price for that guarantee? When is the last time we have stepped back and thought about that?
In the context of retirement planning, this topic is one worth giving some thought to, mainly due to longevity risk. What if we outlive our assets? With the information that we have been posting during the last few months, it is very evident that this is a real risk.
With the number of annuity, and other similar products available in the market place, it becomes even more important to understand the differences between them and which ones, if any, are best suitable for our circumstances.
The two charts in this Advisor One article very clearly demonstrate the need for that research and understanding. The chart with the vertical columns shows the need for such products, and the horizontal bars in the other chart shows how the industry reacts to that need. It is the third horizontal bar from the top that catches your eye.
As a customer, if you were in the market researching annuity type products, this bar clearly shows why it is important to do that research.
Something to think about, and act on.