The Problem With Living Too Long
Employee Benefits and Executive Compensation Bulletin
People are living longer. Undoubtedly, most of us would consider this a good thing, but from one perspective, it’s not, as it makes it much harder to save enough money to generate sufficient income in retirement. Under the defined benefit pension plans that benefitted our parents, longevity wasn’t an issue for retirees; they had a monthly income for life. But in the current 401(k) environment, most employees retire, receive lump sum distributions, roll them over to IRAs, and then have to stretch the money out over the rest of their lives. To do that, retirees need to know the time over which the money must stretch; that is, how long will they live after they retire? But, of course, no one knows the answer to that question.
To view the full bulletin, download the PDF below or visit Employee Benefit News.
The material contained in this communication is informational, general in nature and does not constitute legal advice. The material contained in this communication should not be relied upon or used without consulting a lawyer to consider your specific circumstances. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. Receipt of this communication does not establish an attorney-client relationship. In some jurisdictions, this communication may be considered attorney advertising.