The issue of income in retirement is upon us now. Baby Boomers started becoming eligible for Social Security benefits in 2008, the year the first Boomers turned 62. In 2011, 44% of individuals who first claimed Social Security benefits did so at age 62. As employers have shifted from defined benefits plans, which provided guaranteed lifetime income in retirement, to defined contribution plans, which typically pay out a retirement benefit in a lump sum, the responsibility for managing assets in retirement is now with individuals.
As a result, individuals must now identify strategies and solutions to help effectively manage the multiple risks that may arise in retirement. Guaranteed income products such as annuities can help individuals better manage these risks.
Market Research has identified some of the risks that guaranteed products could help manage, including longevity risk, market risk, excess withdrawal risk, asset allocation risk, sequence of withdrawal risk, and incapacity risk.1Blog query failed : Table 'aps_cpanel.blog' doesn't exist