Using a Longevity Annuity to Save for Retirement
The U.S. Treasury Department recently announced that individuals are now allowed to invest a portion of their 401(k)s or IRAs into a longevity annuity. A longevity annuity, a type of deferred income annuity, provides a steady flow of income to an individual once they reach a certain age and continue to receive income for as long as they live. The longer you defer receiving the payments, the higher the payment amounts you will begin collecting. With healthcare costs rising, especially at an older age, investing in a longevity annuity can be another alternative for retirees to pay for long-term care.
The new Treasury rules also make investing in longevity annuities more appealing to individuals by exempting the purchase of the annuities from the required […]