Why Do I Need Guaranteed Lifetime Income?

In the past, retirees typically relied on their employers to provide pensions during retirement. Along with Social Security and personal savings, employer-sponsored defined benefit plans helped ensure that retirees enjoyed a decent quality of life during a retirement that was expected to last between 10 and 20 years.

How different the retirement landscape looks today.

If you are like many Americans, you may not be covered by a traditional pension plan. Even if you are among the lucky few vested in a traditional company pension, there’s always a chance your pension benefits will be reduced. And if you have been a stay-at-home spouse or were self-employed, you may not have access to a company retirement plan of any kind.

What about Social Security? We are all aware of the uncertainty surrounding the future of Social Security. Within less than two decades, there could be more retirees receiving payments than there could be workers contributing to the system. In fact, annual outlays for Social Security are projected to exceed revenues beginning in 2019.¹ And then there’s the reality of inflation– which averaged 3.5% since 1916²–along with the always–rising costs of health care.

Will You Have the Income You Need To Enjoy Your Retirement Fully?

Contributing to the evolving face of retirement is the fact that Americans are living longer, healthier lives. Thanks to medical advances and healthier lifestyles, life expectancy in the United States has risen by 30 years over the last century³ — and continues to rise. In fact, a healthy 65-year-old male today has a 50% chance of reaching age 84, and a 25% chance of reaching age 91. A healthy 65-year-old female has a 50% chance of reaching age 87, and a 25% chance of living to at least age 93.⁴

Living longer and healthier lives means that many people today will be spending a lot of time in retirement, perhaps even 20 or 30 years. And rather than retirement being a time to “slow down,” today’s retirees are finding that it is a gloriously active “third act” of life, a time to harvest the fruits of their life’s work and live the dreams they’ve been building toward during their working years.

Unfortunately, just as people are more actively enjoying their retirement, there are fewer sources of guaranteed income to support those retirement lifestyles. With fewer and fewer guarantees, you want to know that your income sources will last as long as you do.

Our Lifetime Income Annuity provides that assurance. A stream of income for as long as you live— no matter how long that is helps ensure that the fruits of your financial efforts will continue to sustain you throughout your retirement.

¹ Congressional Budget Office, 2005.

² Public Misperceptions About Retirement Security, LIMRA International, Inc., 2005.

³http://www.aarp.org/research/international/speeches/a2003–07–11–international-progressiveconf.html.

⁴ Source: Annuity 2000 Mortality Tables..

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