An interesting topic---how do people deal with longevity as it pertains to their financial planning. Social security was initially set up as a stop-gap for those who were fortunate to live much beyond their date of retirement. When Social Security was first enacted, most people didn't live nearly as long as they do today. With medical technology advances, what will lifespans look like in the future? Even the best financial plan with conservative allocations and modest retirement income withdrawal rates is likely to fail over a prolonged period of time. This is due to the effects of inflation, as well as, the cyclical nature of markets and withdrawing needed retirement funds during various phases of these market cycles. This is where annuities really can provide value to investors, as they can be used as a hedge against longevity risk in retirement.

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