The Secret to Happiness in Retirement
The American College of Financial Services posted a video, “The Secret To Happiness in Retirement,” to YouTube on November 2, 2016. The premise is that a lifetime income is indeed the key to retirement happiness. David A. Littell, JC, ChFC and author Tom Henga make their case based upon various studies of retirees around the world. “Study after study after study has shown people with pensions are much happier in retirement than people who don’t have pensions…Happiness in retirement is tied almost 100% to guaranteed lifetime income.”1
The Possibility of Running Out of Money
On November 11, 2016, Dreyfus BNY Mellon published a separate study corroborating the principle stressed by Mr. Littell and Mr. Henga.2 It identified multiple challenges and risks retirees now face due to the shift away from Defined Benefit Plans to Defined Contribution Plans. Among them were a) the risk of running out of money due to longer life expectancies, b) the risk of having to cope with extended decreases in asset values during market downturns, c) the risk of having to arrange retirement assets to deal with impairment in the ability to make sound financial decisions. These, and other risks identified in the study, are not borne by retirees covered by a defined benefit plan. The plan guarantees a certain level of income even if the investment markets decline. The income is also guaranteed for life and is unaffected by any possible impairment incurred.
Where can someone turn to provide a guaranteed income for life?
Traditional annuities are one source of guaranteed income for life. Another, possibly less well known, option is an insured Guaranteed Minimum Withdrawal Benefit (GMWB) product that blends investment options (e.g. mutual funds) with the GMWB. The Christian Churches Pension Plan is also an option available for ministers, missionaries, and personnel with church affiliated companies and non-profit organizations. The Plan has faithfully served thousands of people since its inception in 1969. It provides a simple, affordable, portable plan with solidly managed assets, and a generous guaranteed income that cannot be “outlived.” To learn more about the Plan, how it operates, its simple structure, affordable cost, the personnel involved in its management and administration, and the guaranteed income available to you, turn to the website ccpension.org. The Christian Churches Pension Plan is Stewardship for Your Future.
1 The Secret To Happiness In Retirement. https:/youtu.be/JRPbApRg8fA. Nov 2, 2016.
2 Retirees At Risk. Planet DC Summer 2016 Edition.