Navigating Retirement: Annuities vs. IRA Withdrawals for Nu Skin Enterprises Employees

Healthcare Provider Update: Nu Skin Enterprises offers healthcare benefits to its employees through various providers, primarily collaborating with large national insurers. For 2026, Nu Skin Enterprises employees should prepare for potential healthcare costs to rise significantly. Record premium increases are anticipated, particularly within the Affordable Care Act marketplace; some states may see hikes exceeding 60%. Contributing factors include escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate increases from major insurers. As many companies consider shifting a greater share of healthcare expenses onto employees, Nu Skin's workers might face larger out-of-pocket costs, making it crucial for them to stay informed about benefit adjustments and optimize their healthcare plan selections. Click here to learn more

There are just a couple of things almost all Nu Skin Enterprises retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.

In the past we have seen retiring Nu Skin Enterprises employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Nu Skin Enterprises retiree about 30 years of retirement income.

As the economy constantly changes, a number of factors may force prospective Nu Skin Enterprises retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.

As life expectancies increase, Nu Skin Enterprises retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?  

The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:

If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.

The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Nu Skin Enterprises. 

Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.

 

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