Don’t Rely Solely on Uncle Sam’s Help During Retirement

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By John M. Campanola Special to The Pineapple You can’t watch television or read a newspaper without being reminded of the uncertain times we’re in. Disappearing jobs, disturbing stock market losses, the rising cost of living — we don’t need to tell you that it’s rough out there. This has made planning for your own retirement even more complicated than ever. While the market has improved since the 2008 crash, retirement account balances are still 1 percent below their peak 2007 value when adjusted for inflation. The crash wiped out trillions of dollars in retirement savings. People who are still recouping their losses may not even read their 401(k) account statements anymore. The Truth About Social Security But other factors have muddied the waters for mapping a course toward a financially secure retirement. People are living longer. At the beginning of the 20th century, life expectancy at birth was 47.3 years. Today, life expectancy is nearly 79 years. This is good news; but we need to prepare for more years in retirement. And if you thought Social Security would take care of you, think again. In 2012, the maximum monthly benefit for a worker retiring at age 66 was $2,513 — not enough for many of you to live comfortably. While there are no easy solutions, the purchase of a life insurance policy can guarantee the protection of your loved ones and also supplement your retirement savings if the death benefit is no longer needed. Leaving a Legacy Life insurance’s primary purpose is to deliver death benefit protection, which can provide a generally tax-free legacy to your loved ones. But permanent life insurance also carries many living benefits. Cash value is money that accumulates within the policy, tax deferred. This means you do not pay taxes on any of the accumulation within the policy. In addition, you can access that money generally tax-free though policy loans. The cash value can also be accessed for college expenses, as collateral for a small business loan, or any other anticipated or unexpected event. In addition to the death benefit protection, the cash value of permanent life insurance can also be used to supplement your retirement income. As such, it can be a vital piece of the complex puzzle of retirement planning. John M. Campanola is an Agent for New York Life Insurance Company. For additional information on the information or topic(s) discussed, please contact him at 561-212-2903