"Any policy development that could encourage structured withdrawals and promote longevity insurance
could be really valuable."
More importantly, though, bigger Social Security checks serve as a kind of longevity insurance
. The longer you live, the greater the chances you'll run through your savings and depend on Social Security for most if not all of your income.
With the SM system, longevity insurance
purchases via S bonds are automatically spread over many years--this helps to diversify the risk of interest rate fluctuations at the time of purchase.
It is important to remind clients that, consistent with the program's original intent, it should be viewed as longevity insurance
. When he signed the Social Security Act in 1935, President Franklin Roosevelt stated: "We can never insure 100% of the population against 100% of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age."
Another option would be to give them a choice to defer the start of Social Security benefits beyond age 70, to make the most efficient use of the program’s cost-efficient longevity insurance
In respect to the former, Penn Mutual acquired last year Texas-based annuity provider Longevity Insurance
Co, which operates in 45 states.
An indexed annuity is in, whereas a deferred income annuity, or a fixed income annuity or longevity insurance
They've seen the variability of the economy through the financial crisis and they see the need for protection, some kind of longevity insurance
. There's a lot of variability with longevity.
Treasury Department regulations that were announced one year ago today allow consumers to purchase longevity insurance
within qualified accounts like IRAs and 401(k)s.
BANKING AND CREDIT NEWS-March 6, 2015-Sun Life, BCE de-risk pension liability with longevity insurance
M2 EQUITYBITES-March 6, 2015-Sun Life, BCE de-risk pension liability with longevity insurance