The Financial Risk of Living a Long Time
People nearing the end of their careers can potentially lose 5% to 10% of their retirement wealth, or the equivalent of 2 to 5 years’ labor, by failing to annuitize their savings or annuitizing too early, according to an estimate by Alessandro Previtero of Ivey Business School in Canada. By providing a guaranteed income for life, an annuity is essentially an insurance policy against outliving one’s retirement savings. In a study, Previtero found that when stocks are rising, people are less likely to purchase annuities offered by their employers.
This excerpt came through my RSS reader this morning. As an insurance guy, naturally I was interested. When I clicked on the link to take me to the original Harvard Business Review blog article I got a 404. So I went to Google and found the article linked below.
No, I will not speculate on the reasons why HBR took their post down. Read the article and let your imagination roam.
