09 Dec New Survey Suggests People (Especially NYS Residents) Should Plan More for Retirement
Planning and saving for retirement can be a difficult and daunting process. Except for the select few, most people live in a situation where future financial stability isn’t guaranteed. That’s why getting your financial house in order sooner rather than later is vital. Deciding to sell structured settlement payments or annuity settlements of some kind can be a great start to achieving greater stability for the many people that aren’t sure if they’re currently saving enough.
According to the TIAA-CREF’s most recent annual Advice Matters survey, fewer than half (47%) of New York State residents are confident that they’re currently saving enough money to last their entire retirement. Identical surveys were conducted on both a national scale and in the state of New York by the financial services institute. Residents of The Empire State are also less likely to hire a financial adviser of some kind (52% of New Yorkers said they have never sought such advice compared to 47% nationally), according to the company’s press release reported by BusinessWire.com.
“Everyone has something to gain from financial advice, because we all have something we’re working toward,” said Charlie O’Connor, Managing Director and head of TIAA-CREF’s Empire State Sector. “No matter where you are in your savings journey, whether it’s paying off student loans, purchasing a new home, or ensuring your loved ones are provided for, you don’t have to go it alone. And the sooner you engage an advisor and put a financial plan in place, the more likely you are to get on track to help achieve your goals.”
Financial advisers can help individuals select the investment options that best suit their specific situations. For example, the long-term benefits of an annuity might be great for someone who doesn’t need the money now, but might not be feasible for every saver. Annual annuity fees can be as much as 3% and most don’t start paying out until years later. Even an “immediate” annuity won’t start providing payments until 30 days typically.
They can also help you determine whether or not you selling an annuity settlement or structured settlement annuity you already have is in your best interest. As a general rule of thumb, a structured settlement can save you somewhere between 25 and 35% in state and federal taxes on interest income that would otherwise be subject to tax. On the other hand most annuities charge early-withdrawal penalties of 10%, which can deter you from obtaining the money you might be better served having on hand.