The first of the U.S. baby boomers began retiring just recently. According to the Wall Street Journal online, 80 million boomers will be retiring in the next three decades. While many boomers planned well ahead, and saved up a good-sized nest egg for retirement, there are many who fell short of their savings goals. All hope is not lost for these individuals; they will not have to survive only on Social Security and their small savings. Boomers approaching retirement should consider purchasing deferred fixed annuities with a portion of their savings, to take advantage of annuities’ tax breaks, higher-than-average interest rates, as well as safety and stability.

Most pre-retirement boomers have savings other than 401k or IRA investments, such as certificates of deposit or savings housed in low-interest rate money market accounts. These savings, while for the most part highly liquid, are not earning much in the way of interest. For a person whose access to these funds will not be a priority in upcoming years, a deferred annuity can be a solid interest earning alternative. Boomers who purchase fixed annuities will find that, after the annuity interest guarantee period ends, they will typically have more money over that time period than by just letting the funds sit in a savings or money market account.

Of course, deferred annuities do not replace investing in 401ks or opening an IRA, but they can be a way to enhance your retirement nest egg by supplementing an already robust savings plan. Those who see retirement approaching quickly should think about the advantages of deferred annuities. Any interest earnings are tax deferred until withdrawn, keeping money in the annuity where it continues to compound interest. The rates offered by deferred fixed annuities are competitive, and for those who worry about rates dropping too far, there is the multi-year guaranteed annuity, which offers a locked in interest rate for a predefined term.

Fixed deferred annuities offer saving choices to those nearing retirement. To learn more about what the current rates and terms are for a number of deferred fixed annuities, call the Annuity Specialists at 1-888-261-6237.