According to a Bank of America analysis, 36 percent more people in the second quarter of 2023 made hardship withdraws from their employee benefits program than during the second quarter of 2022. Individuals are still feeling the pinch of inflation. Fortunately, injured parties with structured settlements are mostly immune from higher costs that could compel them to dip into their retirement savings.
Guaranteed Tax-Free Income. When withdrawing funds before age 59 1/2 from an employee benefits program (or an individual retirement account), a 10 percent early withdrawal penalty is assessed.
Injured parties receiving inflation-adjusted, tax-free structured payments can better manage inflationary pressures without taking the drastic step of withdrawing funds early from their retirement account.
Most of us spend our adult lives worrying about whether we will have enough money to live comfortably in our retirement years. Inflation-adjusted structured settlements give injured parties the ability to weather just about any financial crisis.
For more information about inflation-adjusted structures, give me a call.