PFP2522. Lifetime Income: A License to Spend

Deciding how much to spend from savings in retirement is complicated given uncertain lifespans, asset returns, inflation, etc. This presentation explores the concept that lifetime income can gives retirees a “license to spend” whereby households with a greater share of their wealth in lifetime income spend more than retirees who hold more of their wealth in savings. Additional topics discussed include a framework to determine the optimal lifetime income strategy, advisor perspectives on lifetime income solutions, and how we can improve financial plans to give clients better advice and guidance.

Learning Objectives:

• Describe how households should manage different types of risks
• Understand how households deploy their wealth to fund consumption in retirement
• Explore why many financial planning tools may not accurately portray the potential value of lifetime income strategies