One of my friend’s grandmother is in good health. She’s 76 and has some money saved, but she’s afraid to invest it all in the market and keeps a significant amount in a bank savings account.
Recently, my friend showed her an option she found worth pursuing. Using Nationwide income calculator, she invested $10,000 into a lifetime income source.
She will be receiving $902 for life, starting next year, which represents a 9% annual return. You might think that’s not a large amount, but this is really about psychology. She used to be afraid to withdraw money from her account, worrying it might not last long enough. Now that concern is gone. There’s no reason not to enjoy the pension when you know it will last forever.
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