Developing the right financial strategies for saving, investing, and ultimately distributing money during retirement is essential to a prosperous life after retirement.

Your life has been filled with hard work and saving for retirement. If you don't generate a regular income stream to pay your bills, you may run out of savings.

A long-term income stream can be created if you start now.

It can be difficult to make ends meet in retirement without retirement planning. Your job will no longer provide you with a regular income, and for many people, Social Security benefits aren't enough to cover the cost of living if they don't save enough money.

When people do not have a retirement plan, they face the following challenges:

Financial Hardship: The lack of savings may force you to rely on Social Security benefits, which are insufficient to cover many people's living costs. The result can be financial hardship and even poverty.

Reduced quality of life: If you are struggling to make ends meet in retirement, you may have to reduce your lifestyle. Reducing travel, hobbies, or even basic needs might be necessary.

Increased stress: Financial hardship can have a detrimental effect on your mental and physical health. In the long run, this can lead to health problems such as anxiety and depression.

Risks Associated With Retirement Planning

Here are seven possible risks of retirement planning -

• Longevity risk: You risk outliving your savings due to a longer life expectancy or unexpected medical expenses.

• Inflation risk: This is the risk that the cost of living will rise faster than your retirement income, leading to a decrease in your purchasing power.

• Health risk: This is the risk of unexpected health issues that can impact your ability to work and save for retirement, as well as increase your healthcare costs during retirement.

• Tax risk: This is the risk of unexpected changes to tax laws or regulations that could impact the value of your retirement savings or increase your tax liabilities during retirement.

• Market risk: This is the risk of market fluctuations affecting the value of your retirement investments. A sudden market downturn could significantly reduce the value of your portfolio.

• Interest rate risk: This is the risk that interest rates will change, which could affect the value of your retirement investments, particularly bonds.

• Withdrawal risk: This is the risk of withdrawing too much money from your retirement accounts too soon, which could deplete your savings faster than anticipated.

Why Fixed Index Annuity (FIA)?

Accumulate money for retirement

FIAs offer the potential to earn interest based on changes in an external index.

Protect your Principal

Grow tax-deferred

Your contract can start earning interest based on an external index, but you’re not actually buying any stocks or shares of an index. This means you cannot lose your money.

You don’t pay taxes on the interest your annuity earns until you take money out. This helps compound your interest, so the money can accumulate higher.

Leave a legacy

Receive guaranteed income

Get Flexibility

FIAs pay your loved ones a death benefit if you pass away before you start taking scheduled annuity payments.

Annuities are designed to provide a reliable stream of retirement income, either for a set period or for as long as you live. Some FIAs even offer you the potential to get increasing income.

Some FIAs offer riders to help you address specific needs. They also offer a variety of crediting methods and flexible options for receiving income.