I’m happy to see that the federal government is continuing their work promoting annuities as a valuable tool in retirement. Business Management Daily’s “Uncle Sam encourages annuity options” highlights some of the changes being promoted at the federal level. By making it easier to purchase annuities and lessening the regulations that keep some people away, the U.S. government is working hard to make sure that Americans can finance their retirement. Using an annuity to guarantee lifetime income is the right decision for many retirees.
The Treasury Department and the IRS have made annuity benefit calculations simpler, eliminating some of the administrative costs. This pertains to partial annuities, which payout a stream of income over a predetermined term, up to your lifetime. Some people shy away from annuities because of their required minimum distribution rules. The government is taking away some of these rules to make it easier to buy a longevity annuity with an IRA or 401k annuity transfer. Longevity annuities aren’t for everyone because they don’t start paying you until age 80 or above, but for those with good health and a family history of long life, longevity annuities can ensure you won’t outlive your money. The government’s help in promoting annuities is a good thing for the industry, as well as for Americans’ financial future.
Written by Rachel Summit
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