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The Importance of Lifetime Income

In today’s aging society, the widespread assurance of lifetime income is the single most important step needed to improve the retirement security of older Americans.  The American Academy of Actuaries believes that retirement security can and should be significantly improved by the promotion of lifetime income, and that actuaries have an important role to play.  The Academy has identified lifetime income as a top public policy issue and strongly supports initiatives that will lead to more widespread use of lifetime income options. 
 

Background

In August 2011, the Academy’s Public Interest Committee (PIC) sought input from the membership on a proposed statement advocating stronger public policy support for lifetime income solutions for Americans. The membership response was strong, encouraging, and helpful in determining Academy direction. The PIC ultimately concluded that the actuarial profession has much more to say than could be captured in a single, brief position statement.  
 
The Academy expanded the lifetime income public interest statement to a longer-term initiative to:
  • Promote meaningful discussions both within and outside the profession;
  • Actively engage with the public policy community;
  • Host discussion symposia on longevity, longevity risk, and lifetime income;
  • Coordinate efforts of the life and pension practice councils; and
  • Develop actuarial policy statements.
 
In February 2011, the Life Practice Council and the Pension Practice Council created the Lifetime Income Risk Joint Task Force to address the risks and related issues of inadequate lifetime income among retirees.  The goal of the task force is to educate the public, lawmakers, regulators, financial advisors, employers and the media on the risk of inadequate lifetime income.
 

Academy Lifetime Income Public Statements