Celebrating Independence
By Laura Minzer
The Fourth of July is just around the corner, which means the skies will soon be alight with fireworks, families, friends, and communities will be gathering for feasts and festivities, and the United States will be celebrating the anniversary of its independence from Great Britain 247 years ago.
For most of us, celebrating independence in life’s every day moments means different things. For my soon-to-be 15-year-old, freedom arrives in the form of a driver’s license a little over a year from now. For my parents, freedom is still having good health and the ability to enjoy their retirement years traveling between children and grandchildren. For my husband and I, freedom means securing the financial resources necessary to navigate the years ahead which not only include additional drivers, but post-high school education expenses and everything in between and beyond, times two.
Surviving financially until retirement is important, but so is having the financial freedom to enjoy our retirement years when we arrive at that phase of life. To say it can all feel overwhelming would be an understatement.
There are, however, many tools available to help it all feel a little less overwhelming. Insurance products are important for protecting against all of life’s unanticipated financial emergencies (such as new driver mishaps or unexpected visits to the emergency room), but did you know that insurance can also help one achieve a source of guaranteed income in retirement?
According to a recent survey published by ACLI, 4 out of 5 survey respondents said they were worried about having enough savings to last through retirement given the current economic climate, and 73% of those respondents also said they were interested in independently purchasing a guaranteed lifetime insurance product that pays out like a pension.[1]
An annuity is an insurance product that converts premiums into a source of guaranteed fixed income that a consumer can rely on through their retirement years. Annuities are customizable contracts between an insurer and a consumer that vary in their terms and conditions based on the consumer’s financial needs, and they are the only financial product available in the marketplace that can provide a guaranteed lifetime income.
However, it is important for consumers not only to understand their options when it comes to retirement products such as annuities, but also the protections that exist when they purchase an annuity. That is why Illinois along with 38 other states has adopted regulatory safeguards to ensure that financial professionals and the companies they represent are acting in the consumer’s best interest when it comes to making recommendations about annuity products. The standards, which were adopted earlier this year, align with the National Association of Insurance Commissioners (NAIC) Suitability in Annuity Transactions Model Regulation and the SEC’s Regulation Best Interest.[2]
So, before you safely light that sparkler or fire up the grill this 4th of July holiday weekend, take a few extra moments to think about what financial independence looks like for you and your loved ones in the days, weeks, months, and years ahead. Perhaps the path towards celebrating your future financial freedom may seem a little less overwhelming than once thought.
For more information on annuities, please visit: Annuity Awareness (acli.com).
[1] ACLI (May 2023). Morning Consult Survey for ACLI: Retirement Planning. ACLI Annuity Awareness Month. 2305054_ACLI_Retirement-Planning_CT_FINAL_3.pdf (consumerprotection.life)
[2] Illinois Register, 2023, Volume 47, Issue 7 (February 17, 2023). 50 Ill Adm Code 3120: Suitability in Annuity Transactions. Pg 2312-2347. register_volume47_7.pdf (ilsos.gov)