Thirty years ago, pensions provided retirees with a steady income, but today, fewer than 25% of retirees have this guarantee. Today, 401(k) plans now serve as the primary retirement income source for most of our clients.
This shift presents new challenges, as retirement income is now heavily dependent on market performance, which can be volatile and unpredictable.
In addition to market risk, increased life expectancy has become a major consideration. Thirty years ago, a 65-year-old retiree might expect to live until 75 or 80; now, many of our clients areliving into their 90s and beyond. This extended life expectancy introduces the real risk of outliving retirement savings.
