Retirement Clock is Ticking For Millennials
This is a fantastic article from Advisor News and a total "wake-up call" for those non-planning Millennials. As the saying goes, "youth is wasted on the young." For all of us that remember being young and all-knowing, we soon realized that time passes pretty fast. These youngsters are going to regret not planning for their future retirement because the sooner you address those eventual needs....the better.
I'm not sure that many people (including Millennials) know this, but Social Security was never put in place to be the primary source in retirement income. It is supposed to be there to supplement your money needs as you retire. Back when Social Security was introduced, most companies had pensions in place for their workers. That pretty much no longer exists, and individuals are now responsible to put in place any additional lifetime income goals they need to maintain their desired lifestyles.
The Department of the Treasury and the IRS worked together to introduce Qualified Longevity Annuity Contracts (QLACs) in 2014 for people to plan for future income needs using their Traditional IRA or 401k. Just recently, a law (Secure Retirement Act) was passed to encourage companies with employee retirement plans to start offering annuities with a lifetime income guarantee.
In my opinion, this was the government "tapping America on the shoulder" to say that it's time to start planning for retirement and that it's not the governments job to take care of everyone from cradle to grave. Annuities are a good solution because it's the only product type that guarantees a lifetime income stream regardless of how long you live. In other words, your own personal pension.