Why Couples Retiring Together are More Likely to Buy Annuities

Whether you’re an independent agent or a company that sells annuities, it can sometimes be challenging to find clients who are open to the concept. Like all wealth management techniques, annuities aren’t the right choice for everyone. Some people already have plenty of assured income or a nest egg so large that it could essentially never run out, however many people with small social security payments and no pensions find annuities to be the perfect solution to a long and happy retirement. One segment of the population who can benefit the most from investing in annuities over other forms of wealth management are couples who have retired together. As an annuities seller, you have the opportunity to relieve these elderly couples of their worry that one partner dying will leave the other in poverty. Here are the three primary reasons why retired couples are more likely than most to be interested in buying a joint annuity.

Managing a Nest Egg for Two

In most cases, a married elderly couple will have saved and planned to retire together, living off the same nest egg. This means that their monthly burn will be higher than any single retiree so they will need more than the standard calculations for savings and monthly payments. In terms of selling annuities, it becomes more practical for them to put larger sums of money into an annuities fund because they will need to withdraw more each month to pay for joint expenses and living costs.

Self Sufficient Adult Children

The major arguments against investing in lifetime assured income through annuities is that if you die early, the money invested will not be available for children and relatives to inherit but this isn’t necessarily true. While there are annuity options that allow for inheritance of the remainder, a joint life plan will provide the maximum income for the couple. Retired couples often have completely self-sufficient adult children who aren’t relying on inheritance to keep them financially afloat and this allows them to make their own financial decisions free from familial pressure. They can turn their current nest egg into something that will guarantee-ably take care of both of them for life, neither disadvantaging or ever having to rely on their adult children for support. The assurance of annuity payments will also make it easier to age in place, maintaining sentimental properties that may be even more appreciated by adult children like the home they grew up in and all the furniture that has become antiques over time.

Taking Care of a Surviving Spouse

One of the most influential reasons that retired couples will be interested in annuities is the option to take them out together, benefiting both members, even in the event that one partner predeceases the other. This is a major concern for elderly spouses, especially if their quality of life is based on a plan to share their two sets of social security payments. Without an annuity plan, a surviving spouse would have to make it on half or less of their previous income, forcing them to sell their home and downsize during an already devastating experience.

Often the most receptive customers for annuity sales are those either planning for retirement or who have realized the need for wealth management after retirement age. The next time you’re out there helping people organize their retirement, don’t forget to offer married and otherwise eligible couples a joint annuities plan. Because so many retirement options are entirely self-focused, you have a special opportunity to provide loving couples with the ability to both create assured income to share and to take care of each other in the case of eventual widowing. Even if you’re selling to a younger crowd, keep this policy handy for any couple who would like to plan for the future together. Contact Us

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