The Financial Risk of Living a Long Time

The Financial Risk of Living a Long Time

People nearing the end of their careers can potentially lose 5% to 10% of their retirement wealth, or the equivalent of 2 to 5 years’ labor, by failing to annuitize their savings or annuitizing too early, according to an estimate by Alessandro Previtero of Ivey Business School in Canada. By providing a guaranteed income for life, an annuity is essentially an insurance policy against outliving one’s retirement savings. In a study, Previtero found that when stocks are rising, people are less likely to purchase annuities offered by their employers.

 

This excerpt came through my RSS reader this morning.  As an insurance guy, naturally I was interested.  When I clicked on the link to take me to the original Harvard Business Review blog article I got a 404.  So I went to Google and found the article linked below.

CEG_AnnuitiesDeserveAttention

No, I will not speculate on the reasons why HBR took their post down.  Read the article and let your imagination roam.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s