Why Annuity is important now?
Life expectancies in developed and developing countries are on the rise. There are now more than half a million people aged 100 or older around the world.
This dramatic increase in the life expectancy happened because fewer babies and young adults were dying due to advancement in medical science in the last 100 to 200 years.
While this may sound as good as you like it, this poses serious social and financial challenges. This is because social security schemes around the world and retirement systems haven't kept up with this. We are not retirement ready!
While there are some changes which policy-makers can bring about to counter these challenges, here are a few steps we as individuals can take to ensure that our retirement corpus doesn't dry up before we pass on.
1. Become conscious of longevity and the threats it poses. This will help us be more aware of the financial and other needs of distant future.
2. Adapt to the changing workforce. Up-skill and re-skill ourselves so that we can be employable and be a part of workforce for a longer time.
3. Save early and save more. This can help us build and accumulate significantly larger retirement corpus.
4. For those who have accumulated significant retirement corpus, consider purchasing an annuity from an insurance company with is designed to mitigate longevity risks by providing secured guaranteed income in retirement.
If you are interested to know more about annuity products and how they work, you may reach out to us. Link is in the comment section.
Algates Insurance