This AnnuityNews.com article by Linda Koco mentions that fixed annuities purchased by buyers under the age of 50 has been increasing recently. Not just under 50, but also under 40, and even under 30 years old!
Many advisors and agents don’t even think of offering annuities to people under the age of 50. One main reason is that they just don’t want to sell annuities to people who might face a tax penalty if they withdraw their annuity funds before age 59.5. It goes on to say that as far as the 59.5 penalty concerns, the same can be said for IRA’s, however younger adults still purchase IRA’s.
The younger purchasers that can benefit from purchasing fixed annuities, could be people that have exhausted their maximum contributions to their 401(k) or other defined contribution retirement plans since they are using fixed annuities to supplement their retirement savings.
To read the full article, click on the link below.
http://insurancenewsnet.com/print.aspx?id=551141
Note: Annuities can be confusing to many people. As an "independent licensed agent" I try to explain things to you in simple terms so you feel comfortable making a decision. Then I can help you choose an annuity that you feel best fits your needs from a large choice of different insurance companies. Plus if you choose to work with me you will have personalized service by a local independent agent that can shop rates for you, rather than working with a captive agent working for just one insurance company. If you would like my assistance to discuss and/or start the process of getting an annuity please call me at 941-404-5334.