Risks of retirement: market volatility.
There’s no escaping news about the latest highs and lows in the stock market. Volatility can be nerve-wracking, but you have to be in the market to earn from it. How can you ride out volatility and stay invested for the long haul?
Other risks of retirement.
We're living longer, and without pensions.
Low interest rates mean "safe" investments might not pay off.
Inflation steadily reduces the purchasing power of savings.
Retirement is risky.So many factors affect your ability to retire comfortably and threaten your hard-earned savings. We’re highlighting four of the biggest risks on these pages, but there are even more to consider. Taxes, the rate at which you withdraw from savings, and how you allocate your investments all can make your money run out before you do. That’s where annuities may come in.
Volatility is the new normal.The unpredictability of the stock market in recent years may have you worrying about your retirement savings on a daily basis. A streak of record highs may be followed by drastic drops. One sector is strong one month, then takes a dive. Geopolitical events can create optimism in one moment and anxiety in the next. How far away is another 2008? Economists may predict, but no one knows for sure.
Annuities can help balance out volatility.While you may choose to invest in the market for its unmatched growth potential, many financial advisors recommend protecting a portion of your savings from its potential for catastrophic loss. An annuity – whether it’s linked to a market or not – can help you protect your savings and then convert it into a steady stream of guaranteed income during retirement.