There’s an old saying that if you don’t have your health, you don’t have anything. That may ring true for retirees. According to a recent study from Fidelity, the average married couple will pay $275,000 for out-of-pocket health care costs in retirement.1
If you are approaching retirement, you may be surprised to learn that your health care costs could be that high. After all, you’ll likely enroll in Medicare, which you may expect will pay for much of your health care expenses. However, even Medicare comes with premiums, deductibles and copays. Also, Medicare doesn’t cover every treatment.
The truth is that you’re likely to face substantial out-of-pocket costs for most types of health care services and treatments. As you get older, you’re more vulnerable to illness and injury, especially in the later years of retirement. Your health care costs could quickly add up and deplete your savings.
Is retirement right around the corner? If so, you may be in the process of planning your retirement income. If you’re like many retirees, you’ll be able to count on income from multiple sources, including Social Security, retirement account distributions and possibly even a pension.
Many retirees rely on withdrawals from their savings and investments to fund their spending in retirement. Unfortunately, much of that income may not be guaranteed. If you suffer a market downturn in retirement, or if you live longer than expected, you may struggle to generate the kind of income you need.
Fortunately there are tools you can use to create reliable sources of retirement income. One such tool is an annuity. Annuities offer a variety of ways to generate income, sometimes guaranteed for life. Below are three different annuity strategies you can use to generate consistent, predictable retirement cash flow:
First Fidelity Group
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