Lifetime income is a type of income that you continue to receive even after you retire. Unlike a typical job where your income stops when you stop working, lifetime income provides a stream of payments that can last for decades.
There are several reasons why earning lifetime income in your 20s is so important.
1. It Can Help You Live a More Stress-Free Life
If you have a guaranteed stream of income coming in each month, it can take a lot of financial pressure and stress off of your shoulders. Not worrying about money can help you live a happier and more relaxed life.
2. It Provides Financial Security in Retirement
Is lifetime income set in your 20s?
One of the main purposes of lifetime income is to provide financial security during retirement. With a guaranteed income stream, you’ll have peace of mind knowing that you can cover your basic living expenses no matter what happens in the stock market or with interest rates.
3. It Gives You More Flexibility in Retirement
With lifetime income, you’ll have the flexibility to retire earlier than you would if you didn’t have a source of guaranteed income. You can also choose to work part-time or take on other projects in retirement without having to worry about where your next paycheck will come from.
4. It Can Help You Avoid Running Out of Money in Retirement
One of the biggest concerns for retirees is outliving their savings. With a lifetime income stream, you can rest assured knowing that you’ll have money coming in no matter how long you live.
5. It Can Help You Reach Your Other Financial Goals
If you have other financial goals like buying a home or saving for your child’s education, having a lifetime income can give you the extra boost you need to reach those goals faster.
6. It Can Reduce Your Taxes in Retirement
Depending on the type of retirement plan from which you receive your lifetime income, you may be able to reduce your taxes in retirement. For example, if you have an annuity inside of a 401(k) or IRA, your payments may be partially or fully tax-deferred.
7. It Can Help You Leave a Legacy
If you have a family, you may want to consider using some of your lifetime income to leave a legacy for future generations. With a guaranteed stream of income, you can make sure that your loved ones are taken care of long after you’re gone.
8. It’s Never Too Early to Start Planning for Retirement
The sooner you start planning for retirement, the better off you’ll be. By starting to save and invest early, you’ll have a much better chance of achieving your financial goals. And, if you start earning lifetime income in your 20s, you’ll be well on your way to a bright financial future.
Earning a lifetime income is one of the best things you can do for your financial future. If you’re not already taking steps to earn lifetime income, now is the time to start.