If You are Concerned About Saving for Retirement...

Did you know that Social Security AND benefits from your company pension plan will average only 50% of the wages you earned during your last working year? Experts say that you'll need 60-80% of your pre-retirement income just to maintain your lifestyle.

A recent study by the Social Security Administration revealed the sources of income for current retirees: 40% comes from Social Security; 14% from company pensions, and 46% from personal savings and investments!

Accumulating money over time is one of the best ways to maximize your retirement nest egg. The sooner you start, the more time it has to grow. every day you wait costs you money!

It's not too late to start...

There's an old Chinese proverb that says that the best time to plant a tree was 20 years ago; the second best time is now. The same goes for retirement savings. Even if you should have started earlier or saved more, there is a great deal you can do right now. How do you compare to these statistics?

AGE	%of income actually saved	% recommended by financial planners
35-41	0%	10%
45-51	8%	15%
55-61	6%	20%

Annuities, the Power of Tax Deferral

If you want to increases your retirement dollars through a tax-deferred account, consider an annuity. Taxes on your interest earnings are deferred until the time you begin receiving your payments. The longer your money compounds tax-deffered, the more you benefit. This means that the money you normally pay every year as income tax stays in your account, earning more interest. Tax deferred accounts accumulate faster than most taxable accounts like CDs, money markets, or mutual funds.

If You are Retired, and Want to Maximize Your Savings...

If you are already retired, you are probably concerned about conserving your savings so they will last over a long prosperous retirement. Ongoing inflation and taxes are major issues for many retirees who want to stretch their retirement dollars.

Inflation Erodes Your Buying Power

If you are retired, you want your money in a safe tax-advantaged account - one that keeps earning you competitive interest... that helps fight inflation... that allows you to control how much and when you pay taxes. A tax-deferred annuity meets these needs, and also gives you an income you can't outlive.

Start Saving Now. Every Day You Wait Costs You Money

The best way to maximize your savings is to accumulate money over time, letting your interest earnings compound to earn you more money. If you save $100 per month and earn 7% interest, at age 65 you will have:

The Annuity Solution

An annuity is a conservative, reliable method of building and preserving your retirement savings. The major benefits are safety, tax advantages, and something that no other savings vehicle can promise - a guaranteed income for life.

Competitive Returns

When looking at investment options, check net returns, rather than quoted interest rates. If a 9% return is taxable, your net return is only 6% in a 33% tax bracket!

Tax-Deferred Growth

Your money grows faster because your interest earnings remain in your account to accumulate more interest, instead of being taxed. And, there's generally no limit on the amount you can contribute.

Safety and Security

The insurance company reserves funds which equal or exceed our contractual obligations to our annuity customers.

Access To Your Funds

To achieve maximum growth, you'll want to leave your money in the annuity for a longer term. But if you need it, it's there. Most policies allow you to withdraw 10% annually after the first year or withdraw your interest without penalty. Most plans also waive surrender charges if you enter a nursing home or are diagnosed with a terminal illness. There may be a 10% tax penalty if you withdraw before age 59 ½.

You Decide When To Pay Taxes

Since the interest you earn is taxable only when withdrawn, you control your tax bill. You can defer all taxes until you are in a lower tax bracket when you retire. You can also spread the taxes over a number of years of your lifetime.

Guaranteed Retirement Income

The money you put in now guarantees you an income you can't outlive. You may choose to receive your income payments for a fixed period or for your lifetime.

Retirement planning is more important today than ever before. With advances in modern medical care, more people are living longer, healthier lives. In fact, you may spend up to a third of your life in retirement.

Social Security or a company pension won't pay all of your expenses or guard against inflation. How can you ensure a happy and prosperous retirement? And when you do retire, how do you protect your nest egg against inflation and taxes?

Current Trends and Realities

Whether you're looking ahead to retirement or you're currently retired and want to stretch your savings, these trends affect you. Your future financial security depends on what you do now.

Trend	What it means
Inflation is a fact of life	If you are living on a fixed income and the cost of living keeps going up, your standard of living will go down - unless you plan ahead.
The future of Social Security is in doubt	As the larger number of baby boomers retire, a much smaller work force will be trying to support the Social Security system.
Employers are scaling back health benefits	Companies are starting to limit their retirees' health benefits because of rapidly rising costs. Many retirees will have to pay a larger percentage of their group health insurance.
The traditional pension plan is a rarity	Companies have been replacing their traditional pension plans that rely on investment performance and have no guaranteed retirement income.
People are waiting to start families	Children's college education costs now hit many parents in their 50s - the time when they should be increasing their retirement savings.
More seniors ar working during retirement years	Many retirees have inadequate retirement income and are very concerned about outliving their savings.

Copyright 1998 Insurance Concepts, Inc.