Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Plan Compliance Analyst (Administrator)


RPA logo

Pension Consultant

Randall & Hurley, Inc.
(Remote / Liberty Lake WA / Helena MT)

Randall & Hurley, Inc. logo

Senior Defined Benefits Consultant

Loren D. Stark Company

Loren D. Stark Company logo

Retirement Plan Administrator - Senior Associate

(Norfolk VA)

PBMares logo

Education Consultant

(Remote / Putnam Valley NY)

Pentegra logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>

Even Safety-First Retirement Income Strategies Are Probability-Based -- The Real Distinction Is Risk Transfer vs. Risk Retention
Michael Kitces in Nerd's Eye ViewLink to more items from this source
Jan. 14, 2015

"[P]ortfolio-based strategies built around a 'conservative enough' safe withdrawal rate effectively are a safety-first approach, while safety-based strategies using annuitization or pensions can still have at least some risk (as evidenced by the history of insurance/annuity company failures, and the growing shortfall of the PBGC in backing failed pensions). Perhaps instead a better way to recognize the range of retirement income strategies is based on whether retirees trust in insurance and annuity guarantees and choose to transfer the risk, or instead 'trust' in markets and the equity risk premium in the long run and choose to retain the risk while seeking appropriate strategies to reduce or avoid the danger of a shortfall along the way!"

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2022, Inc.