As you near retirement, the time to access the money you’ve been saving quickly approaches. And, if you don’t need to access income immediately, you and your financial professional may determine that an annuity is right for you. Annuities are a retirement product the whole point of owning one is to have guaranteed income when you retire. In fact, annuities are the only retirement product that guarantees retirement income for life.
So understanding how and when you can access the money in an annuity is important. After all, you don’t want to buy something you don’t understand. With an annuity, you’ll experience two distinct phases: the Accumulation Phase (when you’re saving for retirement) and the Decumulation phase (when you’re spending in retirement). That’s pretty simple, right? You have to save money before you can spend it, so the accumulation phase happens first.
However, sometimes life happens and you might need to access the money in an annuity before decumulation begins. In that case, an annuity offers a free withdrawal allowance. Simply put: a percentage of your money can be withdrawn annually at no charge. The team at Great American can walk you through taking advantage of your withrawdal allowance if needed. After you meet all of the qualifications spelled out in your annuity contract to begin receiving income, the Decumulation phase can begin. At that point your financial professional can make a recommendation based on your goals. You may start taking payments or decide to let your money continue to grow in the Annuity. If you’d like to begin the decumulation phase, there are many options: receive a single payment, or receive income over time in monthly, quarterly, semiannual, or annual payments. The process to start payments is straightforward and our team will walk you through the necessary paperwork. And in just a few weeks your payments will begin.
No matter when you need to access your money, Great American makes everything as simple as possible, and whenever there’s a question, we’re only a phone call away. With Great American, it pays to keep things simple. .
As found on Youtube