Retirement

Fidelity Investments released their annual estimate of the amount required to cover health care costs in retirement. The $240,000 estimate is for a 65 year old couple retiring in 2009. This amount is in excess of what is provided by Medicare. In other words, the $240K is for costs over and above what is covered by Medicare. The $240,000 is up 50% from 2002, highlighting the fact that retirees face vastly different rates of inflation than the rest of the population. Source: Fidelity Investments...

The Center for Retirement Research at Boston College released a brief that discusses how to receive a free loan by deciding when to receive Social Security benefits. Retirees have an option to start receiving Social Security benefits: a) as early as age 62 but receiving reduced benefits; b) full retirement age (66), or; c) as late as age 70 which would result in higher monthly benefits. The wrinkle involved the law essentially providing one with the ability to change his or her mind. For...

Some of the nation's most prominent financial advisors are looking at annuities in a new light. Partial annuitization to ensure a base of stable income is discussed. Think twice if you are at or approaching retirement and you are not able to at least have a basic annuity-related discussion with your financial advisor . "At the end of the day, investors want to know they can withdraw X amount of dollars [a year] for life. That's why it makes a little more sense than it ever has before," he says...

The financial crisis took a toll on the amount of total assets and total sales within the U.S. variable annuity industry. Both figures had significant declines relative to the same period in 2007. That said, combined net assets in variable annuities in the U.S. still exceed $1 trillion, and total sales of variable annuities in the U.S. in 2008 exceeded $150 billion. Table 2. Variable Annuity Premium Sales(1) Quarter Ended Year Ended (Dollars in Millions) 12/31/08 12/31/07 12/31/08 12/31/07...