{"id":384767,"date":"2020-11-19T07:03:10","date_gmt":"2020-11-19T12:03:10","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=384767"},"modified":"2020-11-19T07:03:10","modified_gmt":"2020-11-19T12:03:10","slug":"new-study-people-living-longer-in-retirement-signals-need-for-lifetime-income-strategies","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/new-study-people-living-longer-in-retirement-signals-need-for-lifetime-income-strategies\/","title":{"rendered":"New study: People living longer in retirement, signals need for lifetime income strategies"},"content":{"rendered":"

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New study: People living longer in retirement, signals need for lifetime income strategies <\/b><\/p>\n

Some retirees outliving savings, others spending less than they\u2019ve accumulated<\/i><\/p>\n

DES MOINES, Iowa–(BUSINESS WIRE<\/a>)–
\nGuaranteed income strategies have emerged as underutilized methods to not only help people save for retirement but also provide a stream of income to sustain them during potentially longer life spans. The new study from the Longevity Project<\/a> in collaboration with Principal Financial Group\u00ae<\/sup><\/a> and the Stanford Center on Longevity<\/a>, explores the implications of longevity in retirement and potential policy and industry recommendations. According to the white paper, Lifetime Income to Support Longer Life: Retirement Innovation and the New Age of Longevity<\/a><\/i><\/span>, people entering retirement tend to either overspend and withdraw funds at unsustainable rates, or they underspend, denying themselves basic needs because they\u2019re afraid of running out of money.1<\/sup><\/p>\n

\n\u201cThere\u2019s been a significant improvement in life expectancy over time,\u201d said Sri Reddy, senior vice president, Retirement and Income Solutions at Principal\u00ae<\/sup>. \u201cAt the same time, many retirees are significantly underestimating how many years they\u2019ll spend in retirement. This uncertainty, combined with variables including declining pension benefits and rising costs, can make it difficult to plan for spending one\u2019s assets in retirement.\u201d\n<\/p>\n

\nThe average American turning age 65 today can expect to live 40% longer than someone who turned 65 in 1950.2<\/sup> Furthermore, the number of Americans retiring every day has more than doubled over the last 20 years.3<\/sup><\/p>\n

\n\u201cWhile helping Americans save enough for retirement must continue to be a critical priority, our research points to the next frontier for retirement\u2014helping Americans spend their retirement savings in a sensible, measured way,\u201d said Ken Stern, chair of the Longevity Project. \u201cIncome annuities have emerged as a viable and immediately realizable vehicle to help many Americans generate guaranteed lifetime income. However, expanding the role of guaranteed lifetime income will require a concerted effort to educate consumers.\u201d\n<\/p>\n

Solving the puzzle of longer life and longer retirement<\/b><\/p>\n

\nAccording to a Longevity Project \u2013 Morning Consult poll featured in the study, only a small percentage of retirees and pre-retirees (7%) are counting on annuities to be an important part of their retirement portfolio. This compares to much higher reliance on Social Security benefits (64%), personal savings and investments (38%), and 401(k) or 403(b) plans offered by employers (35%). The new white paper attributes these low adoption rate to several factors:\n<\/p>\n