Retirees spend twice as much when they have guaranteed income, research finds
July 10, 2024 by Emile Hallez
Guaranteed income sources like Social Security, pension assets, and annuities give people a “license” to spend more in retirement, new research found.
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Wink’s Moore on the Market: Illuminating!
“A survey that was part of the research found that nearly 60 percent of respondents said they would feel more comfortable spending on nonessentials if the money came from an extra $10,000 of income rather than a lump sum of $140,000, which is the equivalent cost of an income annuity.”
“This is probably the most important reason to consider allocating more savings to lifetime income,” said David Blanchett.
No kidding!
“…retirement spending can often be increased, and the two most common ways to do that are using savings to delay Social Security claiming to age 70 or to buy private annuities with guaranteed income components, said the paper’s other author, Michael Finke.”
For more good stuff, check it out. -sjm
