For many older Americans, Social Security immediately comes to mind when they think of retirement benefits. That sense of security and monthly income puts them at ease when entering their “Golden Years.” But by explaining annuities and their benefits the same way retirees understand and view Social Security, you could see your National Agents Alliance annuity sales increase dramatically.
The problem is, most Americans don’t understand annuities and believe it’s just another expense. But, when you break it down like Social Security they can better understand how annuities can help them during retirement.
LifeHealthPro.com has broken down how retirees view and what they don’t consider when it comes to Social Security:
How retirees view Social Security:
- They view Social Security as a monthly income plan.
- They can tell you exactly what they will receive in benefits at a given age, because of the certainty it provides.
- They understand that the longer they wait to take income the more income they will receive.
- The income is actually increased by 4 percent to 8percent per year as they wait to start taking it. A boomer gets a whopping 8 percent increase each year they delay the income.
- These benefits are viewed as stable, predictable and backed by the government.
What retirees don’t consider when it comes to Social Security:
- “How much money did I have to put into Social Security to get this monthly income?”
- “What rate of return did I make on my money that I’ve paid into Social Security?”
- “What is my account balance on my Social Security account for lump-sum withdrawal?”
By challenging your clients to consider those questions when talking about annuities and Social Security, it will get them to think about and really consider other retirement planning options. It is very seldom that Social Security can cover your basic needs and live a comfortable lifestyle and as an agent with National Agents Alliance, it is important to make your clients aware of the options they have to supplement it. By talking about how annuities can help to fill that gap, you can continue to assist your clients with leading a more comfortable retirement.