A longevity annuity guarantees fixed annual income starting around age 80, letting you spend freely in your 60s and 70s without worrying you'll run out of money in your 80s and 90s. It protects against the uncertainty of investment returns over decades.
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With continuing advancements in healthcare, many of us are living longer than ever before. But for those of us who are retired or planning to retire, we need to consider the financial impact of living into our 80s or 90s or even into our hundreds. Because if we cannot be certain of what our savings or investments will earn from year to year, much less what they will earn over 20, 30, or 40 years, How can we be certain that our money will last into our 80s or 90s? And if we want to be sure that we will have enough to last us into our 80s and 90s, will we need to take less income during our 60s and 70s? Well, there is now a way to maximize our income during the first 20 years of retirement without the risk of running out of money during the last 20 years of retirement. Because we can now secure a contractual guarantee to pay us a certain annual income beginning only when we reach age 80.