Understand the need for guaranteed income It’s a natural tendency for people to underestimate how retirement risks might affect their finances in the future. However, the risks associated with longer life spans, rising health care costs, or even changes in the market can easily derail your plans and leave you with an unexpected income gap. Here’s how some of today’s most significant risks could deplete your retirement incomes.
Running out of money Your retirement may be longer than expected.
Rising healthcare costs Medical expenses could be greater than you think.
35% Percentage of pre-retirees expressing "major concerns" about running out of money in retirement. 1 54% Percentage of retirements earlier than planned, and often not by choice 1
$662,156 Lifetime healthcare costs for a healthy 65-year-old couple 2
$300,000 The gap you could be left with, even if Medicare covered half 3
Market volatility Markets rise and fall, but recovering from a drop may take longer than you expect.
$7.2 trillion The estimated market value lost in the last global financial crisis 4
5 years The time it took to get back to pre-crash levels 4
No one wants to run out of money in retirement, but that’s what could happen if you don’t have a guaranteed income plan to help protect your assets. Your later years could be spent cutting corners to reduce expenses, returning to the workforce if you’re healthy enough, or finding other ways to make ends meet. That’s why you need guaranteed income that can stand the test of time, regardless of life’s changes or how the market performs.
1 LIMRA Secure Retirement Institute. The Retail Retirement Reference Guide, Fifth Edition, 2021. 2 HealthView Services: 2021 Retirement Healthcare Costs Data Report. 3 This example is hypothetical and is not indicative of any actual Medicare coverage amounts. 4 Calculated by multiplying the value of the market capitalization of all the stocks in the S&P 500 index by the percentage decline in the index’s value from December 2007 to June 2009. The result was $7.2 trillion in market value that was lost. Calculated by Protective Life using data provided by Morningstar.
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