In a recent interview, TIAA-CREF CEO Roger Ferguson discusses post financial crisis retirement planning and CREF's role in the new retirement planning landscape.
Ferguson believes that increasing longevity in the U.S. is a key driver of what will be a very different 21st century retirement system.
Ferguson also suggests that stable sources of lifetime guaranteed income--in other words an annuity--should provide the "backbone" of the future system:
It's really important to use this to educate people about financial literacy, the importance of retirement for the 21st century and how retirement is likely to change. People really have to plan to be retired for 20, 30 years or longer. Part of what we've been saying is that retirement systems have to have as a backbone guaranteed income for life -- income you can not outlive -- in the form of a fairly priced annuity.
The interview also touches on issues of inflation risk, investing and diversification, the future of the 401k and health care reform.
Source: News Observer
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