Risks on the retirement horizon
Although many of us look forward to retiring with great anticipation, it can be risky business. Many financial experts feel that longevity, the risk of outliving their retirement funds, is the greatest risk facing today’s retirees. It’s important to understand the risk so you can find ways to potentially mitigate its effect.
Life expectancy/longevity
According to the Social Security Administration, a 65-year-old American man can expect to live 17 years on average, while a woman the same age can expect to live 20 years. Thirty percent of women and 20 percent of men can expect to reach age 90.1 Pension plans, Social Security and annuities are methods to receive lifetime income.*
| Many financial experts feel that longevity, the risk of outliving their retirement funds, is the greatest risk facing today’s retirees. |
The annuity solution
Most annuities offer a payment option that provides an income that cannot be outlived.* The contract owner can arrange to have the annuity paid over his or her lifetime or over the joint lives of the owner and his or her beneficiary. Once you place your annuity under a payment option, you will begin receiving a steady stream of income. When you select a lifetime income option, the monthly or annual payments you receive are guaranteed by the claims-paying ability of the issuing company regardless of how long you live — even if the total payments should exceed the accumulated account value of your annuity. 
*Guarantees are based upon the claims-paying ability of the issuing company.
1Source: Social Security Administration, 2000 Period Life Table Extrapolated to 2008.
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