We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • New study: People living longer in retirement, signals need for lifetime income strategies

    November 25, 2020 by Principal

    Guaranteed income strategies have emerged as underutilized methods to not only help people save for retirement but also provide a stream of income to sustain them during potentially longer life spans. The new study from the Longevity Project in collaboration with Principal Financial Group®, explores the implications of longevity in retirement and potential policy and industry recommendations. According to the white paper, Lifetime Income to Support Longer Life: Retirement Innovation and the New Age of Longevity, people entering retirement tend to either overspend and withdraw funds at unsustainable rates, or they underspend, denying themselves basic needs because they’re afraid of running out of money.1

    “There’s been a significant improvement in life expectancy over time,” said Sri Reddy, senior vice president, Retirement and Income Solutions at Principal®. “At the same time, many retirees are significantly underestimating how many years they’ll spend in retirement. This uncertainty, combined with variables including declining pension benefits and rising costs, can make it difficult to plan for spending one’s assets in retirement.”

    The average American turning age 65 today can expect to live 40% longer than someone who turned 65 in 1950.2 Furthermore, the number of Americans retiring every day has more than doubled over the last 20 years.3

    “While helping Americans save enough for retirement must continue to be a critical priority, our research points to the next frontier for retirement—helping Americans spend their retirement savings in a sensible, measured way,” said Ken Stern, chair of the Longevity Project. “Income annuities have emerged as a viable and immediately realizable vehicle to help many Americans generate guaranteed lifetime income. However, expanding the role of guaranteed lifetime income will require a concerted effort to educate consumers.”

    Solving the puzzle of longer life and longer retirement

    According to a Longevity Project – Morning Consult poll featured in the study, only a small percentage of retirees and pre-retirees (7%) are counting on annuities to be an important part of their retirement portfolio. This compares to much higher reliance on Social Security benefits (64%), personal savings and investments (38%), and 401(k) or 403(b) plans offered by employers (35%). The new white paper attributes these low adoption rate to several factors:

    • Consumers may not see income annuities as simple or easy to understand. Variable annuities and indexed annuities have a reputation of being more complex and sometimes more expensive.
       
    • Consumers don’t want to “lose” money by putting it in an annuity and possibly dying before getting their money back. They may value access to their money over the promise of not running out of money.
       
    • Financial professionals are still warming up to annuities. Some may lack understanding of how annuities work and may not position them with clients. 
       
    • Retirement plan sponsors are the gatekeepers of America’s defined contribution plans—the retirement savings vehicle for millions of Americans. Since very few plans currently offer guaranteed lifetime income options in their plan’s lineup, people may just not be familiar with them.

    Product innovations such as automatic enrollment and automatic escalation and the growth of target date funds have helped many Americans to save for retirement. But at retirement, many find themselves in a financial world with little to guide them on how to spend down their retirement savings, facing a wide variety of complicated decisions and few ways to protect themselves financially if their retirement lasts longer than average. These factors underscore the value of working with financial professionals.

    “With the passage of the SECURE Act last year, we took an important first step towards creating a framework for guaranteed retirement income solutions,” said Reddy. “This study shows us there is a real need for industry, plan sponsors, financial professionals and policy makers to collaborate at new levels to increase access to lower-cost income annuities and similar lifetime income solutions so American workers may have a more secure retirement and more confidence that they will not outlive their resources.”

    As a part of its continued commitment to promote financial security, Principal works with financial professionals to provide the resources employers need to help workers prepare for retirement. Now more than ever, it is important to help people develop a plan that supports them feeling confident about the future — and guaranteed income is a key strategy that can aid in that effort. Principal has an innovative in-plan solution that provides guaranteed income for the rest of the plan participant’s life, which is even more valuable as people live longer than previous generations and spend more years in retirement.

    News Release Contact

     

    US Retirement

    Lonnetta Ragland, 515-878-1504

    1 Longevity Project interview with Steve Vernon, March 6, 2020

    2 CDC, National Center for Health Statistics, Health, United States, 2018, “Life expectancy at birth, at age 65, and at age 75, by sex, race, and Hispanic origin: United States, selected years 1900–2017” 

    3 U.S. Census Bureau / Deutsche Bank https://finance.yahoo.com/news/americans-retiring-increasing-pace-145837368.html

    About Principal®

    Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. Our employees are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible. To find out more, visit us at principal.com.

    About the Longevity Project

    We foster research and public conversation to build awareness of the implications of longer life, and bring together leaders from business, government, and the social sector to plan for the transitions in healthcare, retirement planning, the future of work and more. Together with our lead content collaborator, the Stanford Center on Longevity and other leading universities, think tanks and media organizations, our goal is to support a new awareness of the longevity challenge and support change so that people around the world can live healthier, more secure and more fulfilled lives.

    The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

    Stanford Center is not an affiliate of any company of the Principal Financial Group.

    Investment and Insurance products are:

    • Not insured by the FDIC or any federal government agency
    • Not a deposit or other obligation of, or guaranteed by, a bank or any bank affiliate
    • Subject to investment risks, Including Possible Loss of the Principal Amount Invested

    Guarantees are based upon the claims-paying ability of the issuing insurance company.

    Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-247-1737, member SIPC and/or independent broker/-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392.

    Principal, Principal and symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.

    Originally Posted at Principal on November 19, 2020 by Principal.

    Categories: Industry Articles
    currency