Closing the guarantee gap

How policymakers can restore the role of lifetime income in workplace retirement plans
With people living longer, retirement is lasting longer, but retirement income savings is not keeping pace.
Most Americans underestimate their life expectancy...putting them at risk of outliving their savings
The retirement income gap is staggering. Social Security is not enough to cover retiree expenses.
There is an obvious solution to the guarantee gap: in-plan annuities must play a central role in retirement savings plans, along with financial education, income planning tools and more flexible distribution options.
Annuities give you regular income after you retire
Six recommendations
1 These data are based on calculations for non-smoking individuals with average health using the Actuaries Longevity Illustrator developed by the American Academy of Actuaries and the Society of Actuaries, available at:
2 Pension Rights Center, Nation’s Retirement Income Deficit Now $7.7 Trillion, Mar. 12, 2015, available at: ; Jack VanDerhei, Bridging the Gap: How Prepared are Americans for Retirement, Testimony before the U.S. Senate Special Committee on Aging, Mar. 12, 2015.
3 In 2016, Social Security replaced about 50% of pre-retirement income at age 65 for the typical low earner (income of $21,000 in 2015), 39% for the medium earner (income of about $48,000) and 32% for the high earner (over $76,000 in income). National Academy of Social Insurance, Social Security Benefits, Finances and Policy Options: A Primer (2016), available at:
This material is for informational or educational purposes only and does not constitute a recommendation or investment advice in connection with a distribution, transfer or rollover, a purchase or sale of securities or other investment property, or the management of securities or other investments, including the development of an investment strategy or retention of an investment manager or advisor. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made in consultation with an investor’s personal advisor based on the investor’s own objectives and circumstances.
Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
Certain products and services are only available to eligible individuals.
Any guarantees are subject to the issuer’s claims-paying ability. Payments from variable annuities will rise or fall based on investment performance.