As you approach retirement, your financial peace of mind becomes more critical than ever. Converting your hard-earned 401(k) into a reliable income stream can seem daunting, but Fixed Index Annuities (FIAs) offer a solution that combines security and growth potential. Discover why FIAs might be the perfect fit for your retirement strategy, especially if you’re considering rolling over your 401(k).
The Reality of Retirement Savings for the 60+ Crowd
If you’re in your 60s, you’re not alone if you feel your 401(k) balance isn't where it should be. Here’s a snapshot of the current retirement savings landscape:
Vanguard reports that Americans aged 55 to 64 have a median 401(k) balance of $70,620 and an average balance of $232,710, according to their How America Saves 2023 report.
A 2024 Empower article shows that Americans in their 60s have a median 401(k) balance of $209,382 and an average balance of $555,621.
These numbers highlight that many individuals nearing retirement may not meet the often-cited goal of having eight times their salary saved by age 60. Despite this, there’s still time to make significant improvements to your retirement savings strategy.
Steps to Boost Your Retirement Savings
At 60, you can still enhance your retirement security. One highly effective approach is to roll over your 401(k) into a Fixed Index Annuity (FIA). Here’s why this strategy makes sense:
Why an FIA?
Market Downturn Protection: FIAs allow your savings to grow with a market index’s performance while protecting your principal from market losses. Your savings can increase when the market does well, but won’t decrease when the market drops.
Guaranteed Lifetime Income: FIAs can provide you with a dependable income stream for life, ensuring you won’t outlive your savings. This guaranteed income is crucial for maintaining your lifestyle and covering expenses in retirement.
Tax-Deferred Growth: With FIAs, your earnings grow tax-deferred, maximizing your savings’ compounding potential until you begin taking distributions.
Personalized Flexibility: FIAs offer various customization options, such as income riders and death benefits, allowing you to tailor the annuity to your unique needs and goals.
For Those with Larger 401(k) Balances
If your 401(k) balance is $250,000 or more, rolling over a portion into an FIA can significantly boost your retirement security. This strategy provides a balanced approach, combining market growth potential with the safety and guaranteed income an FIA offers.
Importance for Smaller 401(k) Balances
Even if your 401(k) balance is under $250,000, an FIA is essential. The protection from market volatility and guaranteed income that FIAs provide are vital to ensuring financial stability in retirement, especially when working with more limited savings.
Take Charge of Your Retirement Today
Ensuring a secure and comfortable retirement is within your reach. Rolling over your 401(k) into a Fixed Index Annuity can offer the growth potential and security you need as you approach retirement age.
Call Barry Corp today at 866-540-9122 or click to schedule your Financial Discovery and secure your guaranteed stream of income at retirement.
References
Vanguard. How America Saves 2023.
Empower. 2024 Retirement Savings Report.
Your financial future deserves the best possible strategy. With Fixed Index Annuities, you can enjoy peace of mind knowing your savings are protected and your income is guaranteed. Don’t delay—take control of your retirement today.
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