Without a guaranteed stream of income, older adults are exposed to the risk of outliving their assets. Pensions no longer exist for most workers and Social Security is often inadequate to maintain a comfortable lifestyle. That leaves annuities as a guaranteed income source. Annuities are a contract between an investor and an insurance company that offer tax benefits and the promise of a lifetime stream of income.

Unfortunately, many annuities have high expenses, which erode investment growth, and some are sold in high-pressure situations such as “free meal” seminars. Studies have found that annuities can extend the life of retirement savings, but many people do not fully understand or trust them. This class will cover key elements of annuities, types of annuities, advantages and disadvantages, common features, qualified vs. non-qualified annuities, government entities that regulate annuities, withdrawal and exchange options, qualified longevity annuity contracts (QLACs) to fund living expenses in later years, annuity research results, and annuity resources.