Compliance March 6, 2023
Pre-Retirees Less Confident Their Retirement Income Will Last to Age 90
Confidence among pre-retirees that they will receive enough income from all their accumulated retirement sources to cover basic living expenses throughout retirement has dropped in four of the last five years.
Reported by Plansponsor Staff
In a new research article, LIMRA raised concerns about the ability of future retirees to cover their basic living expenses in retirement if they cannot secure more sources for lifetime-guaranteed income.
Pre-retirees—workers within 10 years of their of anticipated retirement dates—are less likely than retirees to say they will be able to cover basic living expenses in retirement with lifetime-guaranteed income sources, LIMRA Secure Retirement Institute research shows.
“[The pre-retiree cohort] will need to figure out proactively how to create sustainable income, with a higher likelihood of failure than what their parents are facing,” says Matt Drinkwater, corporate vice president of annuity and retirement income research at LIMRA, via email.
LIMRA data showed 70% of retiree respondents said between Social Security, traditional pensions and annuities, they expect to have sufficient lifetime-guaranteed income to cover all their basic living expenses. Workers without a traditional defined benefit pension will have to patch together their sources for guaranteed income in retirement, adds Drinkwater.
Pre-retirees—workers within 10 years of their of anticipated retirement dates—are less likely than retirees to say they will be able to cover basic living expenses in retirement with lifetime-guaranteed income sources, LIMRA Secure Retirement Institute research shows.
“[The pre-retiree cohort] will need to figure out proactively how to create sustainable income, with a higher likelihood of failure than what their parents are facing,” says Matt Drinkwater, corporate vice president of annuity and retirement income research at LIMRA, via email.
LIMRA data showed 70% of retiree respondents said between Social Security, traditional pensions and annuities, they expect to have sufficient lifetime-guaranteed income to cover all their basic living expenses. Workers without a traditional defined benefit pension will have to patch together their sources for guaranteed income in retirement, adds Drinkwater.
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