This weeks Insurance 101 focuses on life insurance as a retirement fund.
This fund provides the cash needed to help provide funds for retirement. With increased life expectancies and inflation’s gradual erosion of the purchasing power of any retirement nest egg, addressing retirement fund needs becomes even more critical.
Traditionally, retirement income has come from three primary sources; Social Security, company-sponsored pension or profit-sharing plans, and personal savings. With fewer American workers with pension benefits and the uncertainty regarding Social Security benefits, establishing a personal retirement fund is critical. The rule of thumb we suggest for establishing a Retirement Fund level is at least 70 to 80 percent3 of one’s pre-retirement income.
As usual, if you have any questions about this or any other insurance-related issues please feel free to e-mail me at firstname.lastname@example.org