The case for lifetime income
Perhaps the most consequential retirement policy development of the past half century has been the shift from defined benefit (DB) pensions, which provide retirees guaranteed income for life, to defined contribution (DC) retirement savings plans, which typically do not.
The Case for Lifetime Income, published by the Global Aging Institute in collaboration with Prudential Financial, examines the enormous benefits for both individuals and society of the longevity pooling that underlies lifetime income. It also discusses the biases and barriers that have impeded the wider adoption of lifetime income in DC systems and explains how they can be overcome. Along the way, the report takes a close look at the current state of lifetime income provision in five countries: Australia, Japan, the Netherlands, the United Kingdom, and the United States. It concludes that without stronger policies to convert retirement savings into lifetime income, retirement insecurity will continue to grow.
