Twenty-four financial services companies have formed the Alliance for Lifetime Income, whose objective is to educate Americans about the importance of protected lifetime income solutions. The group plans to do this with online and offline content, tools, thought leadership, events and new terminology to simplify this complex topic.
“The Alliance for Lifetime Income believes the possibility of outliving hard-earned savings is a real threat to the financial and emotional well-being of Americans currently in or approaching retirement,” says Colin Devine, educational adviser for the alliance. “Even people who spend their whole lives growing their savings worry they will be unable to maintain their desired lifestyle in retirement.”
The alliance conducted a survey of Baby Boomer and Generation X households and found that 48% of those with people aged 45 to 72 with investable assets between $75,000 and $1.99 million have no protected monthly income other than Social Security.
On the other hand, 88% of protected households say they are confident their retirement money will help them achieve their lifestyle goals, and 77% say they are not worried about their retirement. Further, 80% are confident they will be able to withstand losses in the markets or unexpected expenses. This is true for only 63% of unprotected households.
Among the members of the Alliance for Lifetime Income are AIG, AXA Equitable Life, Franklin Templeton, Goldman Sachs Asset Management, J.P. Morgan, MassMutual, Milliman and Nationwide.