How to close the retirement income gap

For retirees Don and Delores, one option could be a life annuity, CFP Alexandra Macqueen finds

Alexandra Macqueen 6 March, 2020 | 1:48AM

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Don, about to turn 65, is facing an important decision. Laid off from his full-time employment, he’s wondering if his savings are enough to meet his retirement income goals if he decides to pull the trigger on retirement now.

While Don and his wife Delores have saved up a nest egg that’s approaching $1 million, without a defined-benefit pension, Don is worried that unexpected events – from uncertain market conditions, unpredictable inflation, and the potential for living longer than expected – could mean his portfolio doesn’t last as long as he (and his spouse) might need it to.

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About Author

Alexandra Macqueen  Alexandra Macqueen CFP®, regularly consults to businesses, organizations and other planners on retirement income planning, annuity analytics, and other personal financial topics. Follow her on Twitter at @moneygal.