Why Allocate to Lifetime Income?
There are many uncertainties that should be addressed when building a retirement income plan, such as future market returns, how long retirement lasts, inflation, potential long-term care expenses, etc. While there is not really one single product or strategy that can simultaneously address each risk, one product that can be used to actively address longevity risk, which is the risk of outliving your resources in retirement, is to allocate savings to an annuity that provides income for life.
This piece explores how well a portfolio would potentially do when it comes to matching a given potential income benefit from an annuity and demonstrates why retirees who are especially interested in ensuring they have income for life should consider allocating savings by purchasing a lifetime income annuity.