Prepare for today’s key retirement challenges Rising costs The annual inflation rate remains at its highest level since the early 1980s, despite declining from its peak of 9.1% in June 2022. To realize your vision of retirement, you’ll need assets and income that can help you combat rising costs.
+6.5 % Annual inflation (12/2021 - 12/2022)
Source: Greg Iacurci, “Here’s the inflation breakdown for December 2022 - in one chart,” CNBC, January 12, 2023.
Market downturns A bear market can significantly reduce your retirement assets and income. When it comes to building a retirement portfolio, consider financial instruments that can protect your portfolio from losses of 20% or more.
Average once every 3.6 years Stock market declines of 20% or more since 1900
Source: Ned Davis Research, Inc., based on Dow Jones Industrial Average daily closes from 1/2/1900 through 12/31/2022.
Living longer It’s simple math. The longer you live, the more assets you will need to accumulate for retirement. Building your retirement savings is important, since retirement for you and your spouse may last 30 years or more.
45 % Chance that one spouse will live to age 95
Source: Insured Retirement Institute (IRI), IRI Retirement Fact Book 2022, based on data from the American Academy of Actuaries and Society of Actuaries, Actuaries Longevity Illustrator (accessed 10/13/21).
Important information on CDs, Fixed Annuities, Stocks and Bonds : CDs, fixed annuities, stocks and bonds have different objectives, risk tolerance levels and time horizons than index annuities. For example, CDs offer a fixed rate of return and FDIC insurance backed by the full faith and credit of the U.S. government. Income from CDs is subject to ordinary income tax. Some CDs may include an early withdrawal penalty. Fixed annuities offer a fixed rate of return guaranteed by the issuing insurance company. Stocks and bonds offer the potential for capital appreciation and income, but they are subject to risks, including the possible loss of principal. Gains or income from stocks and bonds are subject to capital gains or ordinary income tax. U.S. government bonds and Treasury bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest from Treasury bills and U.S. government bonds is exempt from state and local income taxes, but may be subject to federal income tax. Earnings for CDs, stocks and bonds are taxable annually, while earnings from an annuity are not taxed until withdrawn. Please consult your financial professional or agent regarding your individual situation when comparing these various instruments to index annuities.
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