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Aging Gracefully

  • Oppenheimer Life Agency, Ltd.
  • June 28, 2022

Sailing Towards New Horizons

Experiencing a health care event can have an impact on the retirement you have always envisioned. An accident, chronic illness or early onset of Alzheimer’s may require some form of Long-Term Care (LTC) services, which can deplete assets rather quickly. Planning ahead today can help ensure you receive the care and attention you deserve while preserving a portion of your wealth to carry out the retirement lifestyle you had intended.

Have you Considered an Annuity?

Unlike a traditional long-term care policy whereby you pay a premium in exchange for a benefit you may never utilize, an annuity can be an alternative solution to satisfy both your retirement and LTC needs. In addition to offering lifetime income and tax deferred accumulation of the funds you invest, annuities provide additional riders that can cover the cost associated with long-term care. The income from the annuity can be utilized for in-home care, an assisted living facility or a nursing home, providing you with the flexibility to choose the care that is right for you.

If a LTC event occurs, you can access the funds immediately after the annuity is issued. This will give you the confidence of knowing that the financial support is there when you need it; and if you do not require LTC or do not use all of the benefits made available to you, the funds remaining in the annuity can be used in retirement or eventually passed on to your heirs.

young man pushing elderly woman in wheelchair

Aging Gracefully — Retiring with Confidence

Tom and Nancy, both 68, have worked their whole lives while raising three children. They are looking forward to spending their retirement years together, traveling to those bucket list destinations they never had time to visit. Shortly into retirement Tom is diagnosed with Alzheimer’s disease. Though this was unexpected, Tom has made it clear in previous discussions with Nancy that he would prefer to receive care, if he ever needed it, at home. Thankfully, a few years back their Financial Professional suggested they purchase an annuity with a LTC rider. The annuity will provide an income stream, allowing Tom to have the in-home care he desires. Although this is not what Tom and Nancy had envisioned their retirement would be, they are happy they were prepared so Tom can live comfortably at home and the cost of his care will be covered.

Quotation from Aenean Pretium

Discovering the uncharted path that annuities can take us on



You should be mindful of the withdrawal charge period, also known as the surrender charge, associated with annuities. Generally the surrender period is between six and eight years, with surrender charges of typically 6%-8.5% depending on the carrier. The surrender charge will usually decrease each contract year until it hits zero at the end of the surrender period. It is also important to note, there is a 10% Federal tax penalty on earnings withdrawn before age 59 ½.

© 2022 Oppenheimer & Co. Inc. Transacts Business on All Principal Exchanges and Member SIPC. All Rights Reserved. The information contained herein is general in nature, has been obtained from various sources believed to be reliable and is subject to changes in the Internal Revenue Code, as well as other areas of law. Neither Oppenheimer & Co. Inc. (“Oppenheimer”) nor any of its employees or affiliates provides legal or tax advice. Please contact your legal or tax advisor for specific advice regarding your circumstances. No part of this brochure may be reproduced in any manner without the written permission of Oppenheimer & Co. Inc. 4774020.1