Annuities are extremely good for U.S citizens. They are good in the sense that an individual can be assured of a comfortable life after retirement.
The history of annuities in USA dates back to a century ago when it became necessary for the government to incorporate this kind of arrangement into employee pension plan such that when the employees retire, they would have enough money to spend after retirements.
One major reason why the U.S citizens are encouraged to take pension schemes and annuity plans is because after retirement, one does not have enough energy to work, therefore, steady supply of income is not guaranteed. If by bad luck this individual does not have children and family members to support him, he will retire from the world as soon as he receives retirement letter.
Retirement always come before one notices. Thirty years might look far from today but the fact is, once you join the employment sector, it’s a matter of few years before you realize time has moved. A good employer always encourages his employees to join a pension plan as soon as they join the organization. This is because they know the importance of retirement benefits.
Retirement is scary, and I will tell you why.
Imagine, when you are at your prime time, friends are in plenty, you can move wherever you want, you can do even the hardest job on earth, everything is fun…but when you reach age 55,energy diminishes, friends disappear, your movement get restricted and family members diminish. You remain alone. This is definitely the time you need a partner, and your partner is pension, which will help you move around, visit places, meet new friends and buy energy foods. This actually explains the magic a 30-year savings plan through annuities can do.
What happens mostly in USA is that those who are introduced to an insurance company for savings see 30 years as a lot of time. Others believe they can die before they retire. These are two major things that discourage people from saving on provident fund, annuities or pension plans. Those who are bold enough sign up for the policy and eventually become the happiest lot after retirement.
One thing I can assure you is that we all don’t know what tomorrow holds. Even the life we are living is about risks. So taking a risk of saving in a retirement plan is way better than not saving at all and come to regret when you have no energy left, no friends and nothing to keep you busy.
As I conclude, I would encourage anyone with the plan of retiring gracefully to take a step and join a retirement benefit scheme or a provident fund.