Annuities Linked to Stocks Take On New Life
Today, the boomer generation worries about amassing enough money for retirement. Tomorrow will bring another worry: how to make a limited pool of savings last for life.</br></br>That's where annuities come in--the type known as "immediate pay." These annuities guarantee you a permanent income, no matter how long you live.</br></br>They have some drawbacks. But insurers are starting to rethink immediate-pay annuities to make them more salable--especially annuities linked to the performance of stocks.</br></br>You buy an immediate-pay annuity with a lump sum of money. The funds might come from regular savings, stock market gains, a retirement plan, even the cash in a life insurance policy.</br></br>The insurer will turn that money into a lifetime income. The income could also cover the joint lifetimes of you and your spouse. Neither of you would ever run out of cash, no matter how long you lived.