As we head toward 2022 and see more Americans reaching their mid- to late 60s, it is a great time to revisit how annuity products can be used to meet consumer financial challenges.
In anticipation of the new year, here are 22 ideas on how consumers can use annuity products to meet their growing financial needs:
1. Social Security Maximization
Purchase an immediate annuity to provide current retirement income while delaying claiming Social Security retirement benefits in order to qualify and maximize the partially inflation-adjusted monthly Social Security benefit payment.
2. Tax-Deferred Accumulation
Use a deferred annuity for tax-deferred accumulation. Annuity earnings aren't taxed until they are withdrawn or the buyer starts taking regular distributions.
3. Principal Protection
Use the contractual guarantees of fixed annuity products to protect and never lose the principal paid for the contract.
4. An Alternative to Low-Yielding Bank Products
Use a multiple-year fixed annuity (MYGA) as an alternative to purchasing a certificate of deposit to obtain current higher rates of return.
5. Fund Essential Living Expenses
Purchase an income annuity or use the income options of a deferred annuity to help fund essential living expenses in retirement. This approach can free other assets for investing in potentially higher-yielding or inflation-offsetting asset classes.
6. Create Protected Income From Accumulated Assets
Transfer funds from a 401(k) or other qualified retirement savings plan to an annuity product to utilize the annuitization or optional income riders to turn accumulated funds into a protected, guaranteed income stream.
7. Life Insurance Policy Salvage
Use an income annuity to salvage an underwater life insurance contract by converting the cash surrender value created by paid-in premiums into a lifetime income stream.
8. Source of Long-Term Care Funding
Use a non-qualified deferred annuity to fund premiums for a long-term care (LTC) policy. If set up properly, the owner can obtain a tax-free way to purchase LTC.
9. Minimize Longevity Risk
Use a deferred income annuity or qualifying longevity annuity contract (QLAC) as hedges against outliving savings. The options can provide income in case of an extremely long life.
10. Medicaid Spend-Down Protection
Purchase a Medicaid qualified annuity to preserve assets.
11. Create an Annuity Bucket Approach Using Retirement Funds
Purchase income annuities for the Income Now Bucket, a deferred fixed or variable annuity for Income Later Bucket and a third bucket using the income options of a deferred fixed or variable annuity to satisfy required minimum distribution needs.
12. Market Downside Protection
Purchase a fixed annuity contract as a hedge against downside equity market risk to preserve capital at older ages.
Harry N. Stout has been the president of Fidelity & Guaranty Life, deputy chief executive of Old Mutual Financial Network, and managing director of Insurance Insight Group. He is host of the "FinancialVerse" podcast and author of 
