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Record low rates on savings accounts and CDs are hampering the plans of would-be retiree. With CD rates averaging well below 2 percent returns, they can't keep up with inflation. Grant Simon with Simon & Simon International says when retirement gets close you should consider protecting you assets and using as much tax deferral as possible. There are many insurance and annuity products that can protect assets and create lifetime income.

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In a defined contribution plan, fixed contributions are paid into an individual account by employers and employees. The contributions are then invested, for example in the stock market, and the returns on the investment (which may be positive or negative) are credited to the individual's account. On retirement, the member's account is used to provide retirement benefits, sometimes through the purchase of an annuity which then provides a regular income. Defined contribution plans have become widespread all over the world in recent years, and are now the dominant form of plan in the private sector in many countries. For example, the number of defined contribution plans in the US has been steadily increasing, as more and more employers see pension contributions as a large expense avoidable by disbanding the defined benefit plan and instead offering a defined contribution plan.

More companies are cutting costs by dropping their traditional pension plans, As a result, workers looking to offset this loss of income are turning to annuities. Gerald Grant of Simon and Simon International, a Louisiana based firm specializing in independent financial planning and insurance solutions joins us in studio to discuss Pension Planning.

Though many households focus on accumulating assets for retirement, it is equally important that they have a plan in place to help them get as much as possible out of those assets during retirement. New analysis of the National Retirement Risk Index (NRRI) by the Center for Retirement Research at Boston College, and sponsored by Nationwide Mutual Insurance Company, shows the percent of households 'at risk' for retirement jumps from 51 to 60 percent when they live off of the interest from their assets instead of purchasing an inflation-indexed annuity to provide a guaranteed stream of retirement income. 

According to retirement experts Gerald and Grant Simon in Covington Louisiana, purchasing an annuity can be a great way to guarantee your retirement income for as long as you live as well as protect your assets from inflation, stock market fluctuations, a serious medical crisis or other unforeseen circumstances. An annuity can help bolster your retirement financial plan by guaranteeing your retirement income.

An annuity is like a pension you buy for yourself -- you purchase (with a lump sum of money or payments over time) monthly income for a specified period of time or for the rest of your life – no matter how long you live.

While half of women at age 65 will likely live beyond age 85, 92 percent of female retirees and 89 percent of female pre-retirees do not plan far enough in the future to cover this 20-year period. A new report from the Society of Actuaries (SOA) highlights these gaps in planning and offers an actuarial perspective on techniques for addressing these retirement concerns. The report, The Impact of Retirement Risk on Women, identifies findings from the 2009 Risks and Process of Retirement Survey Report, and focuses on issues in the survey specifically as they relate to retirement concerns for women.

Annuity Agents Gerald and Grant Simon in Covington, Louisiana discuss the different options to help women in paticular manage these retirement concerns.

Retirement planning experts Geral and Grant Simon in Covington Louisiana discuss annuities in a retirement portfolio. When it comes time to retire, it becomes necessary to preserve assets and creating an income stream. Fixed index annuities help minimize risk but also offer upside potential. This combined with protection from inflation can make an annuity a useful retirement tool.

Gerald and Grant Simon, Covington, Louisiana- Profile Video