| The standard rule of thumb for many years has been 4%. That’s how much consumers could theoretically withdraw every year from their retirement accounts and not run out of money.
In reality, once retirement begins and customers start to rely on their savings to cover day to day expenses, three things become very important … simplicity, consistency and guarantees.
The traditional concept of the 4% rule has never provided for any of these needs. Why you may ask? Because the 4% is not always 4%. Dr Wade Pfau re-evaluated the economic environment and determined that the new rule is 2.4%. He also stated that people fell into a trap of depending on that income and now they are coming up short; however, buying an annuity in the past would have prevented this problem.*
The Guaranteed Lifetime Income Rider from National Life can give your customers simple, consistent and most of all guaranteed income for all their retirement years. Think about your customers who are approaching retirement and talk with them about retiring confidently. |
