Editor's Note: This article presents some simple ways to strengthen your income confidence in retirement. As you read about how you can make your money last in retirement with different income strategy options at your disposal, check out this debate by two economists on the security of the $3 trillion Social Security trust fund. It's just another personal reminder of how our personal financial security is ultimately up to each of us.
With new swells of Americans turning 65 each day, it’s one of the most-pressing questions in financial planning: How can I make my money last in retirement?
Today’s retirees aren’t just sitting back. As they live longer, they are delving into new opportunities with full steam.
Second-act careers. Entrepreneurship. Volunteering for personal causes. Cross-country tours. Worldwide travel. All of this is breaking the boundaries and redefining how we think of aging.
But the increasing lifespans also bring new trials. Longevity risk and other risk hazards compound with additional years of retirement living.
One of the biggest challenges is creating a dependable stream of monthly income for cash-flow needs. And not just that, but a monthly income stream that you might need to count on for a very long time.
While a one-size-fits-all answer won’t work for everyone, new research tees up some fresh insights on how to make your money last as long as you might need it.
Three retirement experts, hailing from the Stanford Center on Longevity Studies and the Society of Actuaries, completed a study on retirement income strategies. Using a variety of forecasting techniques, they tested nearly 300 strategies in order to see which one would best allow retirement investors to generate income safely and efficiently.
Their findings were aimed at middle-income households – or among investors with some portfolio assets (but not over $1 million in asset values).
