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Stock impact report

Retirees are thinking of annuities the wrong way — and it may trip them up, advisors say [CNBC]

Prudential Financial, Inc. (PRU) 
Last prudential financial, inc. earnings: 2/4 04:18 pm Check Earnings Report
US:NYSE Investor Relations: investor.prudential.com
Company Research Source: CNBC
Annuities can help generate a guaranteed income stream that buyers can't outlive, much like Social Security or a pension. The easiest and cheapest are generally single premium immediate annuities or deferred income annuities, financial planners said. But consumers often buy other types. People saving for retirement have a common goal: Build an adequate nest egg to prevent running out of money in old age. One way for retirees to do that is via a guaranteed stream of income they can't outlive — one that's deposited into their bank accounts every month for the rest of their lives, like a paycheck. At a time when workplace pension plans have largely disappeared, annuities can serve as an alternative for retirees seeking pension-like income, according to financial planners. However, the types of annuities generally best-suited for the job — deferred income annuities, or DIAs, and single premium immediate annuities, or SPIAs — aren't the ones that consumers often buy, financial p Show less Read more
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