Reviews the 7 most important conversations or principles around sound retirement income planning, by presenting the main scientific breakthroughs that have been at the core of providing a sustainable retirement income. The narrative weaves the biographies and life stories of people behind “the equations” many of whom are quite colorful and interesting characters in their own right. This presentation is extremely popular at client-events (as well as advisors) and is the college version of: Retirement Calculus for Poets, based on the best-selling book: The 7 Most Important Equations for Your Retirement: The Fascinating People and Ideas Behind Planning Your Retirement Income
Recent scientific advances enable us to measure true biological age with much greater precision than before. The backward-looking metric of chronological age has become passé and is being superseded by a forward-looking measure of remaining lifetime. In the not-too distant future your phone, watch or even clothes (i.e. wearables) will determine how old you really are.
This presentation, which is geared towards financial advisors but can be used with clients, will discuss the implications of these developments for retirement income planning. For example, longevity risk is now (post-covid) greater than ever before, and “longevity insurance” must be part of the decumulation discussion. Learn how to position protection when your birthday – i.e. the number of times you have circled the sun – is just another number. Based on book Longevity Insurance for a Biological Age: Why your retirement plan shouldn’t be based on the number of times you circled the sun
Your IRA or 401(k) is a number, not a pension. More importantly retirement planning is more than just accumulating a large nest egg. It’s what you do with that number (nest egg) that counts, especially now that most companies have eliminated their traditional pension plans and replaced them with Defined Contribution (DC) pensions. But despite the word pension in the plan absolutely nothing is guaranteed. I argue that it is time to start thinking about Pensionizing (a fraction of) Your Nest Egg. How do you do that? I discuss the role of annuities and other types of longevity insurance that are part of modern Product Allocation. The talk is based on the (2nd edition) Pensionizing book.
Drawing on over a quarter century of his published research, spanning diverse fields ranging from financial history and statistical biology to actuarial economics, Professor Milevsky will offer his unique (and non-quantitative) perspective on why current and future retirees should allocate a significant fraction of their wealth to — and generate most of their income from – life annuities. In a nutshell, his key argument is that annuities, whether they are fixed or variable or anything in between, are the only instruments available for properly insuring longevity risk AND optimally decumulating assets. He will conclude with a personal story on how he (finally) convinced his mother to resist the naysayers and “pensionize” a fraction of her “nest egg.”
