A recent Forbes article by Ashlea Ebeling asks the question: “Will Your Retirement Nest Egg Last Past 100?” This is not only an intriguing headline for retirement planning, but also an incredibly relevant topic during the settlement of personal injury claims as well.
Due to the types of injuries sustained in many accidents, claimants often have medical and lost income needs that will last the rest of their lives. Yet, injury claims are commonly negotiated in terms of cash settlements instead of far more advantageous Structured Settlement annuities, which provide secure, guaranteed payments from highly rated life insurance carriers.
The Forbes article mentions Florence Knapp, recognized as the world’s oldest living person until her death at age 114. She had been receiving fixed retirement annuity payouts since age 63. The annuity kept paying her for 51 more years!
Structured Settlement annuities can be just as effective in providing a lifetime of benefits in a personal injury settlement as well. In fact, they can be designed to provide such benefits for the claimant and even for the lifetime of their spouses and families should they die (ie: joint & survivor annuities). They are even better that what the Forbes article talks about, as these annuities are tax-free and guaranteed, when used to settle personal injury claims.
TIAA offers retirement plans for the non-profit sector. Their CEO Roger Ferguson, Jr says in the article that “the secret of an annuity is that you can’t outlive it.” The article references current Social Security Administration mortality tables, which show that a 65-year-old today can expect to live to about 85 (for a man; 86 for a woman). This means that about half die before then, and half die after, so you better plan for the latter if you don’t want to outlive your income.
For claimants and their families who have been impacted by personal injuries, many of which will impact the claimant for as long as they live, Structured Settlement annuities offer guaranteed, tax-free income forever… even if they somehow manage to match Florence Knapp, they know they will never run out of the money needed to meet their medical or income needs.
Chronovo has created a patent-pending, best-in-class system that melds life company rates and substandard rated ages to provide immediate and comprehensive pricing estimates across all available annuity companies in real time. Our Compass™ system transforms the complex mathematics of each settlement offer into clear, colorful graphs with rich with supportive data. Our Chronograph™ provides a powerful, comprehensive negotiating tool that outlines clear and relevant solutions for all parties.
Call me today at 1-844-600-NOVO to get started.
For the Forbes article on Ms. Knapp and the strategic value of annuities please see https://www.forbes.com/sites/ashleaebeling/2017/10/24/will-your-retirement-nest-egg-last-past-100/#22b274395a6d
By the way, our “The Structure Goose & The Golden Egg” blog last year pairs quite nicely with this Nest Egg comment.