Finance expert Mike Periu on how delaying annuity payments, even by just one year, can significantly increase your income during retirement.
A key concern for many small-business owners is running out of money during retirement. The Society of Actuaries, the Urban Institute and the Women’s Institute for a Secure Retirement undertook a study that analyzed this issue. The study shows that making a few key decisions in time can help prevent the nightmare of running out of money when you can no longer work to earn more. For those with annuities, delaying a payout by just one year beyond the retirement age, increases annual earnings by 9 percent. A 5 year delay—it’s no longer extreme to be 69 or 70 and still working—can boost payouts by 42 percent to 98 percent annually. It’s also important to prepare for financial shocks and leave a cushion for them. During any given nine year period in retirement 67 percent of men and 70 percent of women will experience some type of financial shock.
A little about Mike Periu
Periu founded Proximo, LLC nearly 15 years ago. The company provides small business education and training services with an emphasis on finance and technology.
Periu teaches empowerment through entrepreneurship and economic opportunity. He regularly appears on television and radio talking about these subjects.
Periu also writes for leading blogs about finance. These include: American Express OpenForum, Yahoo! Finanzas and the Huffington Post.
Periu studied Finance and International Business at Georgetown University. He is a Board member at the Council for Economic Education.
