It is a fact that people are living longer with each passing year.
Longevity risk or the risk of outliving one's assets must be a fundamental consideration with any financial plan.
Annuities can provide an effective hedge against longevity risk, and a longevity annuity can be especially useful in providing guaranteed lifetime income.
Some facts and figures from the Prudential Insurance Company:
Today, once an individual has reached age 65, he can expect to live, on average, 19 years or more. And 65-year-old individuals who are married have almost a 50 percent chance they or their spouse will live to age 92.
Today’s retirees are healthier for more of their retirement, which means they will have ample opportunity to spend down their retirement assets.
Actually, it’s not extremely unlikely that today’s near retirees could hit the triple digits. In light of this, a helpful strategy in retirement planning is to model the probability of assets lasting to age 100 or beyond.
Source: Prudential Insurance Company
- Log in to post comments
