Maybe Guaranteed Access to Money Can Buy Some Happiness: Idea File
July 16, 2019 by Allison Bell
Sri Reddy is one of the executives who’s helping U.S. life insurers promote the idea that retirement income guarantees matter.
Reddy is a senior vice president in retirement and income solutions at Principal. He’s in charge of the company’s retail annuity and pension risk transfer operations.
He has helped lead the effort to promote a white paper, developed by Michael Finke and Wade Pfau, that supports the position that combining a stream of guaranteed income, from an annuity or similar product, with cash from a diverse non-guaranteed portfolio sharply increases the probability of an individual still having an income at age 95.
Finke and Pfau concluded that, in the scenarios they analyzed, a combined approach would increase the likelihood of an individual still having retirement income at age 95 to 77%, from 60% with an investments-only approach.
Click HERE to read the full story via ThinkAdvisor.
