Understanding the challenges you may face
Market Uncertainty Investors typically spend decades saving for retirement. Systematic investing in a fluctuating market, coupled with historically rising trends, has helped many Americans accumulate sizeable retirement accounts. While market ups and downs are to be expected, market volatility as you near retirement may cause concern, often in the form of angst and uncertainty. In fact, research cites that some investors need to ‘win’ twice as much as they ‘lose’ to be indifferent to risk. 2 And remember, the closer you are to retirement, the harder it is to recover from an investment loss.
Retiring in a down market What percentage of gain does it take to recover from a loss? 1
42.86%
% of gain required to break even
25%
11.12%
10%
% of loss
20%
30%
So how do I grow my savings if I’m scared of losing it? By protecting it.
Living Longer Today, Americans are living longer on average than ever before. There is a good chance you may spend either as much or more time in retirement than you spent at work. While this is great news, it also means you may need to prepare for a retirement that could last 30 years or more. So how long are you going to live? Well, there’s really no way to know for sure. And if you’re relying on withdrawals from investment accounts for income in retirement, it is more important than ever to carefully plan to help reduce the risk of outliving your retirement savings.
How long will retirement last? If you’re 65 today, the probability of living to a specific age or beyond 3
100%
89%
80%
72%
71%
62%
60%
52%
44%
41%
40%
30%
20%
20%
0%
85 years
90 years
95 years
Women Men Couples—at least one lives to specified age
So how do I ensure my money lasts as long as I live? By guaranteeing your income.
1 Source: Delaware Life Insurance Company, 2023 2 Source: “INVESTOR EDUCATION: The Importance of Behavioral Guidance,” ©2021 PIMCO. Used with permission from Pacific Investment Management Company LLC. 3 Source: Social Security Administration, Period Life Table, 2018 (published in the 2021 OASDI Trustees Report); American Academy of Actuaries and Society of Actuaries, Actuaries Longevity Illustrator, www.longevityillustrator.org
Delaware Life Target Income 10 ® Fixed Index Annuity
3
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