Okay, sure, there’s the old adage: age is just a…..well, you know where it’s going.
That said, what’s the ideal age to pluck down cash on an annuity?
How about this for a little calculus: the age at which you invest in an annuity, coupled with your life expectancy, determines how much money you pocket from this monthly income over the course of your life, according to annuity.org. Your personal lifestyle, financial position and goals pinpoint the ideal age to invest in an annuity.
“It really kind of depends on the annuity investor, but I’d say that sweet spot is anywhere from 45 to 70 years old,” Joe Liekweg, a licensed agent at Insuractive told Annuity.org.
Most financial advisors are on the same page: 70-75 is the idyllic age to buy a fixed income annuity to get the biggest bang out of your payments while sidestepping tying an overabundance of your savings into the annuity, according to entrepreneur.com
According to annuity.org, among questions to bear in mind prior to purchasing an annuity:
- When Will You Need the Money?
- How Much Will It Cost?
- What’s Your Life Expectancy?
- What Are Your Risks?
- Will the Annuity Work Well With Your Other Income?
