Actuarial Observations on Retiree Income Approaches

[Big_Hitter]

https://www.actuary.org/sites/default/files/2019-10/LIRJC_ActuarialObservationsRetireeIncome.pdf

"Actuarial observations can provide insight into the risks inherent in lifetime income planning for retirees and the methods used to possibly optimize retirees’ income. Retirement planning typically focuses on saving enough for retirement, but retirees—either on their own or with the help of financial advisers—could benefit from a plan for how to deploy those savings during retirement, including managing longevity risk, the risk that they may outlive their savings."

 

[SnowballCamper]

Uh, not very insightful, except "The assumptions used in retirement planning models can significantly impact results; consequently, it is advisable that assumptions be chosen carefully and be well understood."

And then no examples about the common assumptions, or how they affect results.

 

[Big_Hitter]

yeah sorry about that - I posted it THEN read it. It seems a tad light....however, how about this nugget?

https://www.forbes.com/sites/baldwi...ng-lump-sums-use-our-calculator/#110c0729691c

"Federal law sets a minimum on what a pension plan can offer a worker. But that minimum is calculated using high interest rates. The higher the rate, the lower the assumed value today of a dollar to be paid in 2040 or 2050. The government also does corporations a kindness in taking a pessimistic view of mortality."

 

[Big_Hitter]

Arguably this would be a new thread but.......

 

[davebarnes]

I stopped reading at: "Lifetime annuities can be used to transfer the risk that retirees
might outlive their savings from individual retirees to insurers."

 

[Big_Hitter]

I stopped reading at: "Lifetime annuities can be used to transfer the risk that retirees
might outlive their savings from individual retirees to insurers."

why would anyone want a lifetime income stream?

 

[ncbill]

I stopped reading at: "Lifetime annuities can be used to transfer the risk that retirees
might outlive their savings from individual retirees to insurers."

With the returns on immediate annuities so poor for an early retiree they would be better off placing those funds in a high-yield money market account instead.