Solving the Decumulation Dilemma
August 27, 2024 by David Blanchett
As the wave of retirees swells, with an average of 11,000 Americans turning 65 each day and an anticipated 30% surge in the senior population by 2030 , the urgency for retirement income solutions intensifies.
Amid this demographic shift, managed accounts have also witnessed explosive growth in recent years.
Click HERE to read the full story via Think Advisor
Wink’s Moore on the Market: I am picking up what you are putting down, David Blanchett!
“Currently, just 2% of the $34 trillion of retail retirement assets are safeguarded against longevity risk.”
Sounds like an opportunity to me.
Oddly, David found that “most financial advisors rely on unprotected systematic withdrawals, a precarious stance underscored by results of a Prudential Market Research survey: 81% of advisors said they preferred this strategy.
Yet the unprotected nature of systematic withdrawals leaves clients open to various risks in retirement, notably longevity risk and sequence of returns risk.
For decades, financial experts have recognized the benefits of allocating a portion of retirement savings to strategies that can potentially generate longevity-protected income. Yet, adoption of annuities remains low, especially within the managed money space.
A solution that addresses the most common concerns about traditional annuity products is a contingent deferred annuity: a CDA.”
Ever hear of them?
“…a CDA strategy is as an insurance overlay covering part or all of a managed account portfolio.”
So, you pay a fee, and get guaranteed income you cannot outlive. Fancy!
Read to find out more about CDAs and how they can change the retirement market! -sjm
