Not long ago, a typical retiree enjoyed a pension benefit provided by their employer, a guaranteed income stream for as long as the retiree (and the spouse) lived. It was entirely employer-funded, a sort of a reward in exchange for a job well-done and loyalty. Some employers were generous enough to even subsidize all or most of health benefits during retirement.
At its core, retirement planning is simple. You trade income during your working years for income during your non-working years. To do this, you set aside a portion of today's income and accumulate enough so you can live off of it in retirement.
It's fair to say that until recently, T (and their advisors) were singularly focused on saving for retirement. Lately, however, the focus has shifted largely to how to make money last through retirement—a move from accumulation to decumulation.
The so-called longevity annuities can be a good fit for those who are delaying Social Security and who have good health and longevity in their family histories, says financial planning expert Michael Kitces in a conversation with Morningstar.
Two academics discuss retirement income planning on WealthTrac by Consuelo Mack. The annuities discussion starts at 14:22, but the entire episode is worth watching.
Highly informational video by Morningstar, covering non-portfolio sources of income like Social Security and pension. The annuity discussion begins at 9:06.
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