The landscape for Americans changed forever

Social Security and Pension benefits historically created the foundation of income and financial security for retirees in the United States.

Legislation passed in 1978 and modified in 1981 that created 401k plans. While the initial intent was to allow employees to supplement their retirement income, the burdensome costs of pension plans to employers progressively led the vast majority of pensions in the US to be terminated.

With pensions now gone, Social Security represents the only stable, predictable source of income in retirement for most Americans, and each of us are now responsible for creating the additional income necessary to maintain our lifestyle throughout retirement.

The need for reliable, increasing lifetime income

While a 2021 Protected Retirement Income and Planning Study by the Alliance for Lifetime Income found that “91% of investors say it is important that their retirement income plan is designed to provide a guaranteed income payment or principal protection”, transitioning from our final paycheck to sufficient, increasing income throughout our lifetime requires careful consideration and planning.

A balance must be achieved that incorporates meeting cash flow needs in the early years of retirement, inflation as the years progress, and periodic larger purchases, such as new automobiles, home repairs, and other expected and unexpected expenses over time.

Fortunately, a wide range of income producing strategies exist today.

Constructing the lifetime income you desire

Assets and expenses vary on an individual basis, as do additional prudent factors to continually achieve the lifetime income you desire:

• What amount of income beyond Social Security is necessary for you to maintain your lifestyle today?
• What will be the impact of inflation in the decades ahead?
• What percent of your income do you prefer be guaranteed, and what percent subject to fluctuation of stock or bond market investments?
• How important is it to you to ensure a reasonable percentage of your life savings will pass on to your children or other heirs?

These and other factors, as well as your peace of mind relative to your finances and retirement income, are important to consider in this process as well.

Guaranteed solutions to achieve the lifetime of income you desire

Highlights of guaranteed features our clients have utilized include:

• Guaranteed stream of income for the life, with the option of it continuing for a spouse as well
• The same as prior, with the potential return of your initial purchase amount to your beneficiaries upon your demise
• Guaranteed principal with income from interest and/or earnings
• The same as prior, with the potential to receive a multiple of your account value for Long Term Care costs, should they arise

While the choices continue to expand, it is critical to ensure such solutions match each individual’s or couple’s exact needs and desires. Please check this topic on the “Contact Quantum” page for further information and/or personalized assistance in this regard.