Variable Annuities to Give your Grandchildren a Head Start on Retirement

Do You Want to Give Your Grandchild a Head Start on Retirement? If you are already retired, there’s a good chance that you receive Social Security. The likelihood that this stream of income will continue for the rest of your life, at least in some form, is probably pretty good. But what about your grandchildren? According to the government, Social Security’s financing problems are essentially long-term in their nature, and should not affect today’s retirees and near-retirees. However, people are living longer, and the first baby boomers are nearing retirement. The result is that the worker-to-beneficiary ratio has fallen from 16.5-to-1 in 1950 to 3.3-to-1 today. Within 40 years it could be 2-to-1. At this rate there may not be enough workers to pay scheduled benefits at current tax rates .  This could have an impact upon your grandchildren’s retirement lifestyle. For example, imagine that your grandchild is 26 years old. What will he/she face in the future? Based on today’s scheduled levels, his/her benefits could be reduced significantly when he or she reaches retirement. As a practical matter, your grandchildren might have five or six decades before they retire. Based upon a 3% inflation rate, your grandchild might need [...]

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