The prospect of having some sort of guaranteed retirement income is particularly attractive in today’s uncertain financial climate. The threat of stock market volatility or outliving your savings is less of a worry if you know you’ll be receiving a check every month for the rest of your life.
Wait, won’t you have Social Security? If so, that still might not be enough to pay for all of your expenses. Furthermore, fewer than one-third (31 percent) of Americans are currently retiring with defined benefit pension plans.
With all of the above in mind, it shouldn’t be surprising that a TIAA survey found that 69 percent of people saving for retirement on the job ranked guaranteed income for life among their two top priorities.
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