Posted on November 30, 2018

WASHINGTON, D.C. – The Insured Retirement Institute (IRI) announced today that two consumer education documents that have been reviewed by the Financial Industry Regulatory Authority Inc., (FINRA), are now available for download.

IRI’s library of FINRA reviewed documents is a rich source of information to assist financial advisors in educating consumers about important retirement planning concepts. The two new documents focus on the value of Social Security benefits and understanding and tapping into common sources of retirement income.

Most Americans expect to receive Social Security benefits when they retire but few realize that the average Social Security benefit is about $28,000 per year or about $2,340 per month versus average annual retirement expenses of nearly $46,000 per year. This means that the average American may need over $17,000 per year in additional retirement income just to meet annual living expenses.

Fewer employees than ever are covered by traditional employer-provided pension plans, which provide guaranteed retirement income for life to retirees. Without such a plan, workers must put greater emphasis on personal savings, and creating a plan to ensure their savings last throughout their lifetimes, to ensure a financially secure retirement.

The recent IRI study, “Retirement, Income and Risk,” showed that many current retirees receive most of their retirement income from a combination of pensions and Social Security, but that will not be the case for most future retirees as only 17 percent of today’s private sector workers have access to a traditional pension plan.

Most employers who provide retirement benefits now do so through defined contribution plans such as 401(k)s, in which employees can contribute pre-tax dollars and some employers may choose to match a portion of employee contributions.

Consumers looking for ways to boost their retirement income should contact a knowledgeable financial advisor to discuss their options, including the use of products such as annuities that can provide protected lifetime income.

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Contact: Dan Zielinski