Sharing this infographic from the Society of Actuaries. It makes a good case as to why retirement plans today should carry well into your 90s, even though the most recent CDC data calculated average life expectancy in the U.S. to be ~79 years....
When Twice is not as Nice
Though not a huge fan of them myself, there are those out there who would feel a lot better about their retirement security if they had a guaranteed source of income, and thus they purchase an annuity.
Like with pension plans, annuity companies use a factor to translate your lump sum of money into an income stream they will pay you over your lifetime....
Shifting Expectations in Retirement Income Sources
Pension Plan Long-Term Returns Drop to Lowest Levels Ever Recorded
Since the tail end of last year, more and more talking heads in the financial industry have been sounding a message, “Be prepared for lower returns.” This, they say, was particularly true of a portfolio invested mainly in the US. A combination of persistently low yields in government bonds and sky-high corporate valuations even amidst a stall in earnings growth would be the recipe to bring this about, perhaps for as long as the next decade....