{"id":8957,"date":"2025-01-23T09:23:08","date_gmt":"2025-01-23T15:23:08","guid":{"rendered":"http:\/\/uawlocal2250.net\/live\/?p=8957"},"modified":"2025-01-23T09:23:08","modified_gmt":"2025-01-23T15:23:08","slug":"will-an-annuity-give-you-a-better-retirement","status":"publish","type":"post","link":"https:\/\/uawlocal2250.net\/live\/index.php\/2025\/01\/23\/will-an-annuity-give-you-a-better-retirement\/","title":{"rendered":"Will An Annuity Give You A Better Retirement?"},"content":{"rendered":"

The 2023 UAW\/GM National Agreement created an annuity benefit.\u00a0 This benefit is offered to members at a reduced rate.\u00a0 When combined with the increase in 401k company contributions of 10% many members will have a chance to create their own guaranteed income stream in retirement.\u00a0 What are the pros and cons\u00a0 of a retirement annuity?\u00a0 Find out here<\/a>…<\/p>\n

\n

Advantages of annuities<\/strong><\/h3>\n

1. Regular payments<\/strong><\/h4>\n

In an era when employer\u00a0pensions\u00a0<\/a>have gone all but extinct in the private sector, annuities can offer contract holders the opportunity to receive guaranteed monthly payments. These payments can provide regular, dependable income through retirement, or provide a bridge to Social Security if you chose to retire early.\u00a0Here\u2019s how an annuity compares to an IRA<\/a>.<\/p>\n

2. Lifetime income<\/strong><\/h4>\n

Annuities can be structured to provide regular payments for the rest of your life \u2014 no matter how long you live. Not outliving your savings is a huge advantage touted by annuity providers. While anyone\u2019s actual life expectancy is almost impossible to predict, the fear of\u00a0running out of money in old age<\/a>\u00a0is a real concern for many Americans. Just keep in mind to secure a lifetime of guaranteed income, you\u2019ll likely need to purchase a rider.<\/p><\/blockquote>\n

What is one of the biggest disadvantages?<\/p>\n

\n

\u00a0High expenses and commissions<\/strong><\/h4>\n

Cost is one of the biggest drawbacks<\/a>\u00a0of annuities. Expenses erode the owner\u2019s returns, especially on a variable annuity where the value depends on the investment returns. Some annuity contracts are so complex that the full rate of the internal expenses is hard for the average person to\u00a0 understand.<\/p>\n

Annuities are typically sold by insurance agents, not financial advisors. That means they earn a commission on the products they sell you. While the commission is usually baked into the annuity contract, it can amount to anywhere from 1-10 percent of the total value of your contract.<\/p><\/blockquote>\n

The new annuity benefit in the national agreement addresses this disadvantage by providing a one percent commission instead of the industry standard two percent.\u00a0 It’s true that the defined benefit pension enjoyed by traditional members was not obtained in the current contract.\u00a0 That said, if you are interested in a guaranteed monthly income check in retirement take a minute and find out more about this annuity benefit.\u00a0 A good place to start is by clicking here<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The 2023 UAW\/GM National Agreement created an annuity benefit.\u00a0 This benefit is offered to members at a reduced rate.\u00a0 When combined with the increase in 401k company contributions of 10% many members will have a chance to create their own guaranteed income stream in retirement.\u00a0 What are the pros and cons\u00a0 of a retirement annuity?\u00a0 […]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[800,145,1077],"class_list":["post-8957","post","type-post","status-publish","format-standard","hentry","category-union-contracts","tag-annuity","tag-pension","tag-retirement-income"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/posts\/8957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/comments?post=8957"}],"version-history":[{"count":1,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/posts\/8957\/revisions"}],"predecessor-version":[{"id":8958,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/posts\/8957\/revisions\/8958"}],"wp:attachment":[{"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/media?parent=8957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/categories?post=8957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uawlocal2250.net\/live\/index.php\/wp-json\/wp\/v2\/tags?post=8957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}