Should You Buy a Longevity Annuity?

• If you’re more than two years from retirement, then a longevity annuity can be right for you
• You should have $250,000 of savings accumulated before purchasing a longevity annuity.

The longevity annuity (otherwise known as deferred income annuity or DIA) is like a pension you can buy for yourself from an insurance company using your pre-tax or post-tax retirement savings, generating a guaranteed income that lasts as long as you do. It’s a great way to diversify your portfolio, and make sure that all, or most, of your basic retirement expenses will be covered for as long as you live. Blueprint Income is not a fiduciary, but we adhere to fiduciary principles, and we’ll never suggest you a buy a product that isn’t right for you. After years of working with clients, we’ve built an easy checklist so you can know if a longevity annuity is a good fit for you:

• Social Security and/or pension benefits won’t cover your regular expenses
• You haven’t retired yet or are early in retirement
• You have accumulated between $250,000 and $5 million in retirement savings
• You have average or above-average health
• You’re seeking greater certainty in retirement and more of an insurance product
• You don’t need the money immediately

Sometimes it’s easier to see what you are instead of what you aren’t. If you can check off these boxes, a longevity annuity is probably not a good fit for you:

• Social Security and/or pension benefits will cover your regular expenses in retirement
• You’re younger than 45 or over 75 years old
• You have less than $250,000 or more than $5 million in retirement savings
• You have below-average health
• You’re seeking market exposure for growth, and more of an investment product
• You need access to the money immediately (check out immediate annuities)

This checklist is a good outline, but we know that it’s sometimes easier to sort through the specifics of your financial future with someone over email or phone. We’re always here to help! You can contact us at support@blueprintincome.com.