An Annuity: Right for You?

An annuity is not for just anyone. Since it involves a gamble some people might deem too risky, you should weigh the different factors that go into determining whether or not investing in an annuity is worth it for someone in your situation. There are certain types of people who will benefit greatly from investing in annuities just like there are certain types of people who will find it just isn’t for them.

More likely to benefit from an annuity:

- Baby boomers - If you and your spouse are in your 50s then an annuity might be a wise investment. It will lessen the taxes on your retirement fund and take the burden off your mind of overspending during your retirement.
- Females - Statistics show that women live longer than men so generally speaking if you are a woman you have a greater chance of being able to cash in on your annuity during retirement.
- The middle class - Not quite rich but not quite poor, most middle class families have the funds to purchase an annuity along with the need to feel financially secure heading into retirement.

Least likely to benefit from an annuity:

- Young adults - Retirement is a long way off and the assets you have accrued at this point can be spent on more pressing things.
- The elderly - If you are a senior citizen then think twice about investing in an annuity. You may not qualify and if you do you probably won’t be able to benefit from it financially.
- The wealthy - You are already financially secure and then some so why bother spending money on something you really don’t need?
- The poor - If you don’t make a lot of money then you shouldn’t spend what little money you do have on something you might not even benefit from in the long run.

An Annuity Isn’t For Everyone

These are just broad generalizations of different groups of people and the likelihood they would benefit from purchasing an annuity. You might be an exception to the rule, however, so you should talk to a life insurance agent at greater detail about investing in an annuity.

Staff contribution: Rafael Onak

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