Paying for Old Age
By HENRY T. C. HU and TERRANCE ODEAN
NYT
LIFE expectancy at birth for Americans is about 78. But many Americans will die well before then, while others, like Eunice Sanborn, who died in Texas last month, will live to be 114.
Anyone planning for retirement must answer an impossible question: How long will I live? If you overestimate your longevity, you might scrimp unnecessarily. If you underestimate, you might outlive your savings.
This is hardly a new problem — and yet not a single financial product offers a satisfactory solution to this risk.
We believe that a new product — a federally issued, inflation-adjusted annuity — would make it possible for people to deal with this problem, with the bonus of contributing to the public coffers. By doing good for individuals, the federal government could actually do well for itself.
(More here.)
NYT
LIFE expectancy at birth for Americans is about 78. But many Americans will die well before then, while others, like Eunice Sanborn, who died in Texas last month, will live to be 114.
Anyone planning for retirement must answer an impossible question: How long will I live? If you overestimate your longevity, you might scrimp unnecessarily. If you underestimate, you might outlive your savings.
This is hardly a new problem — and yet not a single financial product offers a satisfactory solution to this risk.
We believe that a new product — a federally issued, inflation-adjusted annuity — would make it possible for people to deal with this problem, with the bonus of contributing to the public coffers. By doing good for individuals, the federal government could actually do well for itself.
(More here.)
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