A longevity annuity is similar in concept to an immediate annuity, but the lump sum payment is converted not to income for life beginning immediately, but instead with payments that may not begin until the distant future. Such a trade-off allows longevity annuities to provide “income that cannot be outlived” but at a fraction of the cost of a traditional annuity product. In this session, we look at how longevity annuities work, the ways they can fit into an overall retirement income strategy, how they compare to available investment alternatives, their caveats and concerns, and explore the potential role that they may play for retirement income in the future.
- Understand how a longevity annuity works, and the potential features and benefits
- Understand the taxation of longevity annuities
- Understand how the QLAC rules work for longevity annuities in retirement plans
- Be able to compare longevity annuities to other investment and retirement income alternatives
- Be able to design retirement income strategies that combine longevity annuities with other investment and retirement income vehicles