6 reasons to consider retirement income

Embracing longer retirements

People are living longer. And we’re also, for the most part, not choosing to put off retirement. More years to enjoy retirement should be a good thing – if we can afford them. From financial security to mental fitness, here’s how guaranteed income can benefit workers as they enter that next chapter.

1. Continuous income

Knowing you have guaranteed retirement income you can rely on each month that won’t be affected by market swings can help ease a top financial fear: 60% of workplace savers worry they’ll outlive their savings.

2. Spend more confidently

Retirees often tend to cut back on their spending, often unnecessarily. In fact, on average across all wealth levels, most retirees still have 80% of their pre-retirement savings after almost two decades of retirement. Guaranteed income can allow you to budget – and spend – with more confidence.

3. Room to diversify 

Having an amount of money you can count on each month may give you more freedom to invest in more wealth-generating opportunities. Our research demonstrates through a case study that guaranteed income, combined with a more aggressive asset allocation, generates 29% more annual spending ability from one’s retirement savings and reduces downside risk by 33%.⁵

4. Serenity now

Studies show that when we don’t feel financially secure, our overall health can suffer. In fact, 80% of workplace savers say worrying about outliving their savings – even if retirement is decades away – is negatively impacting their mental health. 93% of savers say guaranteed income would help improve it.

5. Ease some pressure off

On average, two out of three Americans will experience some level of mental decline around age 70.⁶ If and when that decline starts to affect financial decisions, guaranteed income for life can offer relief for both you and your loved ones.

6. A savings safeguard

AARP reports that older Americans lose $28.3 billion annually to elder financial exploitation and fraud. Choosing to invest in a fixed automatic income stream can help prevent those without your best interests in mind from being able to make decisions about your money.