The Question Retirement Plans Rarely Answer Honestly
How long are you going to live? It's an uncomfortable question, but your retirement plan depends entirely on the answer. Retirements can last 25 years or more, and for a couple, one spouse may live well into their late 80s or 90s. You can look up an estimate for your own age and sex in the Social Security Administration's period life table (SSA Office of the Chief Actuary). Many retirement income plans are not built for decades of withdrawals.
The Math Most People Are Not Running
Hypothetical example, for illustration only: consider a Coal Region pre-retiree retiring at 63 with $320,000 in a 401(k), $1,400/month in estimated Social Security, no pension, a mortgage with 5 years remaining, and estimated monthly living expenses of $3,800. Monthly income gap: $2,400/month from savings. At that withdrawal rate — assuming 5% annual growth — that account would run out in approximately 16 years, around age 79. An unexpected health expense could shorten that further. Your own numbers will differ.
The Four Retirement Income Risks Nobody Warned You About
- Longevity risk: Simply living longer than your money lasts. The solution is income sources that cannot be outlived.
- Sequence of returns risk: A bad market year early in retirement is far more damaging than the same loss later, because you're withdrawing during the downturn.
- Inflation risk: Over a 25-year retirement, inflation quietly erodes purchasing power in ways that fixed income streams can't keep up with.
- Health and long-term care risk: Many people will need some form of long-term care in later life; see the U.S. Administration for Community Living's long-term care overview for general information. Medicaid covers nursing home care only after you've spent down your assets.
What Contract-Based Income Looks Like
Fixed indexed annuities from carriers like American Equity, F&G, and Corebridge Financial can turn a lump sum into an income stream designed to last for life when an income rider is elected and rider conditions are met. Contract value is protected from direct market-index losses, subject to product terms, fees, riders, surrender charges, and the issuing carrier's claims-paying ability. Interest credits are linked to a market index with floor provisions, but policy charges and contract terms still matter.
A Retirement Income Snapshot session with Latimore Life & Legacy takes about 45 minutes. We walk through your projected income sources, your expenses, your gap, and the options available to close it — with no obligation and no sales pressure.
Many thanks,
Jackson M. Latimore Sr. 1544 Highway S. Rt. 61 - Pottsville, PA 17931 570-900-1977 Jackson1989@latimorelegacy.com www.latimorelifelegacy.com card.latimorelifelegacy.com