保险学Treisch12eh18.pptVIP

Retirement Planning and Annuities Chapter 18 Chapter Objectives Give examples of situations in which an annuity might be an appropriate personal risk management tool Explain the two elements of an annuity certain and the three elements of an annuity based on one or more persons’ lives Distinguish among three different ways of paying for annuity contracts Explain the difference between immediate and deferred annuities Chapter Objectives Identify and discuss the relevant factors determining the size of benefits payable under a joint and survivor annuity List and explain three minimum guarantees that can be added to life annuities Discuss the concept and structure of a variable annuity Describe the process for calculating the federal income tax payable on a benefit paid out under a life annuity Introduction Different degrees of uncertainty usually exist regarding how long individuals will need the income that is to be provided by their savings Particularly if the income will be needed throughout the retirement years Retirement income for most individuals consists of funds from three different sources Social Security One or more employer-sponsored retirement plans Personal savings Financial planners sometimes referred to a “three-legged stool” approach To emphasize the critical importance of all three income sources Figure 18-1: Three-Legged Stool Approach to Retirement Planning Introduction If investment earnings alone will not provide sufficient retirement income Periodic withdrawals from the principal will be required Under such circumstances, individuals living to advanced ages may outlive their income sources Results in the need for a systematic means for liquidating resources Together with a means for protecting against the risk of living beyond one’s financial resources A product that can be arranged to meet these needs is known as an annuity Introduction An annuity is a contract that provides for the liquidation of a sum of money throug