A great deal of attention has been focused on the accumulation phase of retirement planning. Much less has been paid to how to manage accumulated savings in retirement. Yet, with the increased emphasis on personal responsibility, decline of employer-provided pensions, longer lives, and increased likelihood of retiring with large balances in 401(k) type plans and IRAs, this issue has never been more important.
How do retirees set about managing their accumulated savings so that it produces adequate income for the remainder of their lives? How open are they to solutions to help them achieve this objective by providing lifetime guaranteed income? AARP and ACLI commissioned Mathew Greenwald & Associates to conduct a survey to examine issues relating to income management in retirement. The survey shows that retirees, highly concerned about running out of financial assets, may be overly focused on preserving their savings principal while needlessly reducing their quality of life.