&l;p&g;Throughout the years, you have likely marveled at how much prices have risen for items like housing, utilities, transportation, food, and clothing. In fact, even the cost of something as basic as a postage stamp has gone from just 5 cents in 1968 to more than eight times that amount today.&l;sup&g;1&l;/sup&g;
Chances are, though, that if you and/or your spouse have been employed for a number of years, your income has risen over time to help you compensate for inflation and, in turn, the upward movement in the prices of goods and services that you need.
&l;strong&g;A closer look at inflation and how to keep up with it in retirement&l;/strong&g;
While the inflation rate in the United States averaged 3.27% between 1914 and early 2018,&l;sup&g;2&l;/sup&g; it is important to keep in mind that, in some years, inflation has been less than the average, and, in other years, it has been quite a bit more. For example, in some years, the annual inflation rate was in excess of 23%!&l;sup&g;1&l;/sup&g;
Given the average rate of inflation, it could potentially take twice as much income in 20 years to purchase the same items that you buy today. In other words, 20 years down the road, you may need twice as much income just to maintain your current standard of living. For instance, if your initial Social Security retirement income benefit starts at $2,000 per month, in 20 years, these funds could only have the buying power of $1,000 by today&a;rsquo;s standards.
&l;img class=&q;wp-image-326 size-full&q; src=&q;http://blogs-images.forbes.com/impactpartners/files/2018/04/GettyImages-660286864.jpg?width=960&q; alt=&q;&q; data-height=&q;329&q; data-width=&q;640&q;&g; It is imperative when planning your retirement income strategy to make sure that your income will increase over time.
Human life expectancies have been rapidly increasing for some time; therefore, a 20-year (or longer) retirement has become much more common for many retirees. With that in mind, it is imperative when planning your retirement income strategy to make sure that you don&s;t just receive an ongoing income but also that your income will increase over time.
But how can you be sure that your income will go up in order to help you keep pace with the rising costs of goods and services?
One way is with a fixed indexed annuity.
&l;strong&g;Why a fixed indexed annuity can help lead to a worry-free retirement&l;/strong&g;
While many annuities will allow you to receive a guaranteed stream of income that you can count on, fixed indexed annuities provide a long list of additional benefits. These products can offer the opportunity to receive indexed-credited growth while, at the same time, protecting your principal from stock market volatility.
In addition, you can also add a rising income rider. This feature offers the opportunity for your income to increase based on the Consumer Price Index, as long as contract terms are adhered to.
Although the actual benefits can vary from one annuity to another, by adding a fixed indexed annuity with an income rider to your overall retirement income strategy, you could find that your rising income will last for as long as it is needed. Funds may also be paid out to a named beneficiary upon your passing.
&l;strong&g;Locking in your rising income for the future&l;/strong&g;
One of the best ways to live a retirement with added peace of mind is to lock in an ongoing income source that allows for an increase over time so that you can continue to purchase the things you need. A fixed indexed annuity can let you do just that.
It is important to keep in mind, though, that fixed indexed annuities can have a plethora of &q;moving parts,&a;rdquo; and there can be a number of different benefits offered based on the specific fixed indexed annuity that you choose.
While these types of annuities may not be right for everyone, they could be a very good fit for those seeking the opportunity for growth and principal protection during their working years and a possibility for rising income during retirement.
&l;em&g;This content was brought to you by Impact PartnersVoice. Annuity guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company. Insurance and annuities offered through Dave Mortach. Licensed in Ohio.&a;nbsp;&l;/em&g;&l;em&g;Internal Tracking #: 449453-0319&l;/em&g;&l;/p&g;