Guaranteed Retirement Income

Are you looking ahead at retirement, and you want to plan for having guaranteed income through your golden years? Turns out, having a guaranteed retirement income doesn't need to be a pipe dream -- there are things you can do to make this a reality. Annuities, reverse mortgages, pension plans and bonds are just some of the tools that can help you get a guaranteed retirement income. Of course, securing this kind of income isn't easy and may require lots of careful planning. If you haven't met with a financial consultant or a retirement planning firm, then that is often a good first step when setting these long-term financial goals. Also to get you started, here we've compiled some useful myths and facts to help you learn more about your guaranteed retirement income options.

8 Active Myths | Suggest a Myth
MYTH: Reverse mortgages are only available for people ages 62 and up.

The age requirement on reverse mortgages is just one option to meet the guidelines; you can also qualify for a reverse mortgage if you own your home outright or if you have a low mortgage balance along with strong financial resources.

FACT: You can guarantee an income with an Immediate Annuity.

An immediate annuity is purchased with a lump sum of money in exchange for payouts that begin immediately. Some immediate annuities pay out over the life of both spouses for married couples. The older you are, the more an immediate annuity pays out each month.

MYTH: There's no way to buy an annuity now and protect it from market declines.

You can guarantee a solid retirement income by purchasing an annuity that's protected by a withdrawal benefit rider. With this protection, you can buy an annuity more than 10 years before you retire and lock in your account value when the market is at its peak. Even if the market declines, your annuity and retirement payouts won't.

MYTH: People who work full-time can rely on their pensions.

Not all full-time jobs offer pension plans as benefits. Some do -- especially union jobs or jobs in the public sector -- and you may want to consider a career in these spheres if those doors are open to you. But most people need to plan more carefully for guaranteed incomes throughout their golden years.

MYTH: Treasury securities are too risk for building a guaranteed income.

Treasury securities are actually among the safest investments you can make. These variants of government bonds can be purchased in a matter so that they mature on a schedule, creating a type of bond ladder that guarantees income over a period of several years.

FACT: Reverse mortgages provide tax-free guaranteed incomes.

A reverse mortgage lets people cash in on their real estate assets in exchange for guaranteed retirement incomes. Also, new regulations have dramatically reduced the leverage banks have over homeowners with these financial tools.

FACT: Taking your Social Security benefits too early can be a mistake.

Many people lean on Social Security for their guaranteed incomes. However, some people start taking benefits as soon as they turn 62, which limits the income they receive later in life. Talk to a financial planner about when you should start taking your benefits.

FACT: You can put money in a deffered income annuity.

Want to guarantee an income if you live to be elderly? A deferred income annuity rewards you with higher regular payouts when those payments are deferred to a later age -- say 85 or 90 years old. With a deferred annuity, you can use more of your retirement savings for fun knowing you'll have a guaranteed income waiting for when you're likely to need it.