Sentences with phrase «against longevity risk»

Why is an annuity so great at protecting against longevity risk?

Used with caution, an annuity can also provide protection against longevity risk.

In our retirement planning, I'm considering a deferred annuity as a hedge against longevity risk.

They can also do a couple of other things to give them a buffer against longevity risk.

There are protections you can put in place to guard against longevity risk.

The primary function of an annuity is to protect against longevity risk, or the possibility of running out of money late in life.

However, having the government sell annuities could make sense if you believe Canadians need to ensure against longevity risk (point 7) but the fees that insurance companies charge for these products are too high (point 6).

We can see, therefore, that an annuity insures the annuitant against longevity risk, because of the guaranteed lifetime income stream.

Specifically, it provides protection against longevity risk — the risk that you outlive your money.

However, having the government sell annuities could make sense if you believe Canadians need to ensure against longevity risk (point 7) but the fees that insurance companies charge for these products are too high (point 6).

Annuities are viewed as a way to hedge against longevity risk, or the potential for one to outlive one's invested assets.

Benefits of annuities include guaranteed income, protection against longevity risk and upside participation with downside protection.

Protection against longevity risk.

The primary function that these annuities served — and the reason why an insurance company was the one issuing them — was to protect against longevity risk, or the possibility of running out of money late in life.

If you want an even safer alternative, splitting your retirement savings between an annuity and a low - cost balanced portfolio, such as the MoneySense Global Couch Potato strategy, can increase your protection against longevity risk.

If your health is below average, and you're less concerned about protecting against longevity risk, an annuity purchase may not make sense for you

Self - insurance in retirement is the idea that people are insuring against longevity risk themselves, that is, the risk that of living longer than expected and not having the savings to support it.

We've outlined a few tools below to help you protect yourself against longevity risk.

Read on to learn more about different types of annuities and other tools to protect against longevity risk.

Unlike long - term deferral period annuities that are meant to provide late - life income primarily to protect against longevity risk, a shorter deferral period annuity (hereafter called a short deferral annuity) is purchased to provide a steady income to fund retirement spending over the entire retirement life cycle.