The U.S. baby boomers are starting to retire in, well, booms. According to the Wall Street Journal online, 80 million boomers will be retiring in the next three decades. Many boomers planned well ahead, and, using resources offered to them by their jobs, saved up a good-sized nest egg for retirement, but there are many who fell short of their savings goals. Those that have fallen short may feel like they are stuck in a desperate situation, concerned they will not have enough resources to enjoy retirement with just Social Security and their small savings accounts. Boomers approaching retirement should consider taking some of their saving and using it to purchase an indexed annuity, to take advantage of annuities’ tax breaks, and to participate in the stock market’s upswings without sacrificing safety and stability.

Many retirement-age boomers have savings other than 401k or IRA investments, such as certificates of deposit or savings stashed in low-interest money market or savings accounts. These liquid savings may not be earning much interest. If having access to these funds will not be a priority in upcoming years, an indexed annuity can be a solid way to grow your funds for retirement. Boomers who purchase an indexed annuity will find that, after the annuity term ends, they will likely have a higher account balance over that time period than by just letting the funds sit in savings.

An indexed annuity does not replace the use of 401ks or opening an IRA, but an indexed annuity can be a way to enhance a nest egg. They can also be used to supplement an already healthy savings plan. Those who see retirement approaching should seriously consider an indexed annuity. Interest earnings are tax deferred until withdrawal, keeping money in the annuity where it continues to compound interest.

An indexed annuity offers saving choices to those nearing retirement. To learn more about what the current rates and terms are for a number of indexed annuity products, call the Annuity Specialists at 1-800-998-4056.