tm logo

Frequently Asked Questions

What are the benefits of a guaranteed income?

Guaranteed income offers several benefits, particularly for retirees. Similar to a pension plan, guaranteed income products provide consistent monthly income payments to retirees, making budgeting easier and simpler. This is because the individual knows in advance how much they will be receiving, and the amount isn't dependent on the financial market's fluctuations. This predictability of income can be a significant advantage, especially during retirement when a steady income stream is crucial. Another significant benefit of guaranteed income is that it removes the possibility of an individual outliving their assets. This is particularly important in an era where life expectancy is increasing, and the fear of outliving one's savings is a real concern for many retirees. Furthermore, retirees are protected from market declines that could negatively affect their portfolio and their standard of living. This is because the income from guaranteed income products, such as annuities and reverse mortgages, is not directly linked to the performance of the financial markets. For instance, with an annuity, there is no risk of the cash flow decreasing, providing a sense of financial security. Similarly, a reverse mortgage allows homeowners to receive monthly payments for the remainder of their life, providing another source of guaranteed income.
Ask us a question

Post us your question and we will get back to you

Need a quick help?

Schedule a call with our attorneys to resolve your queries