"[In] reality, participants may face an all-or-nothing decision to either buy an annuity or draw retirement income directly from their portfolio (while bearing longevity risk). But prior to retirement the implementation of the [retirement-driven investing] strategy was largely unaffected by that decision. Once longevity annuities enter the picture, however, participants have a third option that has implications both prior to and during retirement. A participant may structure their retirement income by bundling two components: [1] a bond portfolio to fund spending during the first phase of retirement and [2] a longevity annuity to cover spending in the second phase."  MORE >>