Many of our seniors dread ‘superannuation’:  They fear that they might outlive their retirement savings. What will they do if their savings get used up? What will they then do to supplement their limited social security and pension benefits?  What will be left for a spouse or the children and grandchildren?

The inability to properly budget retirement savings stems from not knowing the date or circumstances of one’s death. The resulting fear of outliving savings makes seniors very conservative. They try to live on a self-inflicted meager budget. The constant stress and nagging fear of running out of money becomes nothing short of overwhelming and destroys many a dream of a joyous and relaxed retirement.

By using ‘risk pooling’ tactics and life tables generated by years of practical and actuarial (mathematical and statistical) studies by the insurance industry, fraternal benefit societies can readily help seniors with this problem.

Providence can review a senior’s living needs, his available monies and his estate desires. It can then create a monthly or yearly income stream (not unlike a regular supplemental pension benefit) through a Flexible Premium Deferred Annuity. If the senior then elects an appropriately recommended option, the regular payments will last for his and his spouse’s lives with any remaining principal going to his loved ones. If he dies prematurely the monies will go to a named beneficiary without any delays in probate.

There will be no more headaches with renewing CD’s. The bulk of the assets in the annuity will grow on a tax-deferred basis. Providence’s annuity currently pays 3.25% interest tax deferred and has a guarantee, that, regardless of what CD’s might do, an interest rate of at least 3.00% will be provided.

Our younger readers should consider using a Providence tax-deferred annuity to accumulate assets. Make an initial deposit and, at your discretion, regular additional deposits. Watch your savings grow without paying any taxes. At the right time (at age 59.5 or later), a regular income stream can be created for you.