An interesting study performed by the Center for Retirement Research at Boston College delved into the concept of lifespan variation, and why it provides valuable information about mortality beyond life expectancy. “It is precisely this uncertainty around the average lifespan that gives rise to “longevity risk” – the possibility of living an unusually long time and outliving one’s assets. Insuring against longevity risk through guaranteed lifetime income has become an important policy issue.” The study went on to explain that reducing mortality at higher ages increases lifespan variation by stretching the age-at-death distribution away from the average. This supports our opinion that having an income you can’t outlive is a critical component of planning for retirement. Call us if you’d like to discuss options for obtaining this. We’re always here to help.
