Long Life Spans – and Retirement Income Strategies

Atlanta resident Jim Peniston is looking to retire in about three years, but his biggest concern is outliving his money. In his words, a longer life is a blessing – but it’s also a curse. In fact, according to a survey by Prudential Retirement, 71% of survey respondents feared they may not have enough retirement income to last their lifetime.


[CLICK HERE to watch the video, “The Changing Face of Retirement,” at AARP, July 3, 2013.]


[CLICK HERE to read the article, “Americans concerned about outliving their money,” at JSonline.com, May 22, 2013.]


Fortunately for baby boomers, the world often changes to accommodate this massive demographic – or vice versa. Back in the 1960s and 70s, urban life sprawled to the suburbs and more schools were built to educate the masses of baby boomers as they reached school age. When they decided fitness was important, health clubs sprung up all over the country. Whatever their passions – from organic gardening to book clubs to green building initiatives – there is often a vast segment of boomer-aged innovators leading the pack.


And now that they’re retiring, longevity and retirement income is one of the nation’s focuses. The health care bill is designed to insure more Americans and decrease expenses associated with Medicare. Washington is taking steps to reform tax law and outsource pension plans.


Meanwhile, the financial and insurance industries are working on strategies and new products to provide reliable sources of retirement income. All in the name of ensuring that baby boomers have enough money to live on throughout their longer life spans.


[CLICK HERE to read the article, “How to vary spending during retirement,” at RetirementWatch.com, retrieved March 4, 2013.]


[CLICK HERE to read the article, “The Most Important Thing to Know about Your 401(k),” at Forbes.com, July 12, 2013.]


Apparently, public pension funds are one of the biggest concerns right now. Recently, Senator Orrin Hatch (R-Utah) introduced a bill designed to transfer the risk of insuring public pensions to insurance companies.


The bill would require a tax-law change that would enable governments to turn their pension plans over to life insurers. That’s because if the money that local governments set aside in public pension funds were instead paid to an insurer, it would not receive its current preferential tax treatment.  

[CLICK HERE to read the article, “Pension Proposal Aims to Ease Burden on States and Cities,” at The New York Times, July 9, 2013.]


[CLICK HERE to calculate your current retirement income stream with the “Lifetime Income Calculator” at the Department of Labor; retrieved July 12, 2013.]


While it’s great that so much of American innovation is now focused on how to provide lifetime income for baby boomers, this too is both a blessing and a curse. A blessing that we have so many resources at our disposal, but a curse in having to determine which will work best for each individual situation.


That’s why we’re here to help. Please give us a call.


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Source: Woods Blog Old

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