As more and more Baby Boomers hit retirement age, the fallout from the recent economic downturn could force them to adopt more creative solutions to retirement security, including annuities, according to the New York Daily News.
Annuities are a financial instrument, typically sold by life insurance companies, that provides a guaranteed income based on the amount of money that is invested in it, the Daily News reports, adding that the investment can be made either in installments or in a lump sum.
The paper does caution, however, that retirement planning experts have pointed out that annuities are not appropriate for everyone, and that prospective retirees should move carefully when incorporating them into their future plans. That said, though, annuities are generally thought to be a low-risk type of investment, according to the Daily News.
In addition to annuities, life insurance companies can offer other kinds of security for breadwinners, who can take advantage of term-life or whole-life insurance policies to provide financial stability for dependents in case of the unexpected.