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Besides turning a lump sum of money into an instant stream of income, immediate annuities also help with these needs:
Longer lasting retirement income
American babies born in 1940 had a life expectancy of 62.9 years. By 1970, that life expectancy had risen to 70.8 years. And by 1998, life expectancy stood at 76.7 years.1 Where will that figure be in 2005? 2010? 2020? Nobody can say for sure, but there's historical evidence that life expectancies will continue to rise. Your money should last as long as you do, so immediate annuities may make sense for you—now and later.
Bridging a retirement income gap
Some financial professionals estimate you'll need at least 70 percent of your current income to maintain your current lifestyle in retirement. Where will that 70 percent come from? As the pie chart below shows, Social Security, pensions and other sources combined provide only 59 percent of the income for the average retiree, age 65 and older. That means 41 percent must come from your own resources, including your earnings and investments.2
Resources in Traditional IRAs or savings in investment vehicles can help bridge that gap. Placing those resources into an immediate annuity can help you create a stream of income, enabling you to help maintain your lifestyle. Because an immediate annuity is designed to provide an income stream, it offers no additional tax-deferred benefits over an IRA or other tax-qualified plans.
Keeping pace with inflation
Inflation's corrosive effects can diminish your retirement income buying power. As you can see from the chart below, over 20 years, that dollar you save today could shrink by more than half. That means if you want to maintain your current standard of living in retirement, your money will have to at least keep pace with inflation. Adding a product to your portfolio, such as an immediate variable annuity, which offers growth-oriented investment options, may help.
Your financial representative with Thrivent Financial for Lutherans can help
Contact your financial representative for more information about the Single Premium Immediate Annuity or Single Premium Immediate Variable Annuity from Thrivent Financial for Lutherans. He or she can provide you with costs, complete details of coverage, exclusions, reduction of benefits, and terms under which the contract may be continued in force or discontinued.
Download a prospectus for the Thrivent Financial for Lutherans Variable Annuity. The prospectus contains more complete information on charges and expenses. You should read the prospectus carefully before you invest or send money.
1 Source: National Vital Statistics Reports, 2001.
2 Income of the Aged Chartbook 1998, Social Security Administration, June 2000.
| Contract Forms: #4470, | #4474, #TX4470
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| 20456WC | N11-02 |
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