Three experts weigh in on the challenges and potential solutions.
How we got here
Americans still are woefully underprepared for retirement. That’s a bitter pill for plan sponsors, who believe their mission is to ensure workers have enough savings to sustain their lifestyle in retirement. Legislation has facilitated saving, but creating an income stream in retirement is still a challenge for most people.
“We dump a quarter of a million dollars in (a retiree’s) lap and say: ‘Good luck!’”
Michael Finke
The American College of Financial Services
So where does that leave us? Three experts sat down recently with TIAA to discuss the American retirement crisis, regulatory improvements, savings inertia and the role annuities can play in financially secure retirements.
“The main benefit of an annuity is longevity insurance.”
Angie Chen
Boston College's Center for Retirement Research
Solving the spending challenge
To start, workers need to focus less on how much they’ve saved and more on how they can make that pile of money last. Employers are well-positioned to help with this, for several reasons. In-plan annuities can hedge against longer lifespans and unpredictable markets, and deliver uninterrupted income for retirees. And possibly a better night's sleep for U.S. plan sponsors.
There’s much more to this conversation in the full TMRW publication. Download it here.Opens pdf
“We hand people their life savings at a point when decision-making becomes progressively more difficult."
Christine Benz
Morningstar, Inc.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
