The most useful retirement income questions are simple: How much do I need each month? Where will each dollar come from? What happens if markets drop, prices rise or I live to 95? What happens to my spouse if I die first? How will taxes affect my income? And, for any insurance product, what are the costs, surrender charges and guarantees?
Written and reviewed by Dan Hopwood, Retirement Income Specialist · Retirement Income Knowledge Center
Your state insurance department and the NAIC offer consumer guides to annuities that are worth reading before you buy.
Every household is different. In a free, no-obligation 30-minute review, a licensed insurance professional can walk through your income sources and questions with you.
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Start by answering what you can yourself. For product questions, ask the licensed insurance professional offering the product and read the contract and disclosures. Tax questions belong with a qualified tax professional.
Your Social Security estimate, pension statements, account statements, any annuity contracts and a recent tax return.
No. If you do not understand how something works or what it costs, keep asking until you do.
Ask what is guaranteed and by whom, what the fees and surrender charges are, how and when you can access money, how income is calculated, and what happens at death. Also ask how the insurer is rated and get everything in writing.
Ask how long the surrender period lasts, what the charge is each year, how much you can withdraw free each year, and whether a market value adjustment applies. Also ask how withdrawals affect any income rider.
Ask which checks stop, which continue and at what amount, including Social Security, pensions and annuities. Also ask how taxes may change for a surviving spouse. Writing down the answers helps both spouses.
Ask about fees in both the plan and the new account, withdrawal options, and whether a direct rollover will be used to avoid tax withholding. Ask what happens to any company stock or loans. Get written explanations.
This page is educational and general in nature. RetirementLeverage™ and Retirement Planning Store, Inc. do not provide individualized investment, securities, tax, or legal advice; please consult a qualified tax professional or attorney about your own situation. Insurance products and services may not be available in every state, and any guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.