Actuarial findings show that in 30% of couples aged 65, one person will be alive in 30 years. And in 8% of 65-year-old couples, one person will live to age 100.
New retirees have a variety of adjustments to make, including moving into the distribution phase of investing. They can no longer look primarily for return, but have to give consideration to income and preservation.
The time-tested strategy of shifting toward dividend-paying equities for retirement investors — and not solely toward bonds and other fixed income securities — can help address longevity risk.*
Making a Retirement Income Portfolio Last Percentage of rolling periods when investment was not depleted after 30 years of distributions (1956-2015)