Is there a way to stretch your money during retirement?

Not long ago, a typical retiree enjoyed a pension benefit provided by their employer, a guaranteed income stream for as long as the retiree (and the spouse) lived. It was entirely employer-funded, a sort of a reward in exchange for a job well-done and loyalty. Some employers were generous enough to even subsidize all or most of health benefits during retirement.

But that's not our reality today. As we pointed out in our prior post, we live in a world where:

1. Most of us don't or won't have guaranteed lifetime income (except Social Security),
2. We will likely live a lot longer than our parents, and
3. The timing of our retirement derail our retirement. (For discussion, see another prior post.) 

So, how do we make our money last through retirement?

Well, as financial advisors, that's the question we ask ourselves all the time. We are constantly seeking out new ideas and empirical studies. The more we study and read (and run our own models), the more we are convinced that integrating or permanent life insurance and/or annuities beats investment-only approaches in stretching retirement income.

So, we were more than delighted when we recently came across a study by Ernst & Young. We think you will find it interesting and beneficial, too. 

Here are some excerpts:

Permanent life insurance and deferred income annuities with increasing income potential outperform investment-only approaches in our analysis.
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The results point to the value of permanent life insurance and deferred income annuities with increasing income potential in a retirement plan: an integrated approach can give comfort and peace of mind to retirement investors by providing legacy protection, tax-deferred savings growth, and guaranteed income for life without sacrificing their present lifestyle. 

​Here is a link to the article. Enjoy! 

We do not provide legal or tax advice. Readers should consult their own legal or tax advisor. There is no guarantee investment strategies will be successful. Investing involves risks, including possible loss of principal. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit. Investors should talk to their financial advisor prior to making any investment decision. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.