Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at annuities in retirement planning. Mike, it is logical for people to worry about how they will pay for what they need in retirement. Social Security was never meant to be anyone’s only source of support. I often hear financial experts talk about annuities as a solution to this problem. What are they?
Mike: Summary Answer
- Take lump sum – turn in to promised amount as long as live
- Operates on insurance principle
- Watch for specifics – if die early, beneficiaries get anything?
- Safety of investments; inflation protection, fees
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.