The Center for Retirement Research‘s Anthony Webb, at Boston College, has issued a new 7-page brief on ways Baby Boomers can make their retirement savings last a lifetime. The brief does not contain any new ideas, but it does a good job describing and comparing existing ideas. Financial planners, aging professionals and certain Baby Boomers will enjoy the paper, but it is too technical for the average reader.
Nest egg strategies described:
- Spend the Income, Conserve the Capital
- Spend Down Over One’s Life Expectancy
- Spend a Fixed Percent Each Year
Webb makes a case for annuities:
Although households may in theory do better by delaying the purchase of an annuity, there is a strong case for annuitizing sufficient wealth immediately on retirement to at least secure the householdâ€™s required minimum standard of living, given the likelihood and consequences of error. The question then arises â€“ what type of annuity?
Download the brief here:
Any approach to retirement planning has its own set of benefits and disadvantages, and there is no single approach that works best for everyone. People must find a method that works for their situation, and consider hiring an unbiased financial planner if they are unsure. Given today’s economic climate, longer lifespans, and people looking for an active retirement, the reality is that many Baby Boomers will soon find a fourth approach – looking for retirement jobs to make their nest egg last longer.