Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Retirement Investing

NAVA: SPIAs Increase Bequests

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

Adding a single-premium immediate annuity to a retirement portfolio can increase income and wealth, according to an annuity industry trade group.

Researchers at Milliman Inc., Seattle, have performed an actuarial analysis that shows that including a SPIA in retirement arrangements can increase one typical middle-income couple’s chance of meeting its retirement income goal to as high as 95%, from 77%, according to NAVA, Reston, Va., which commissioned the analysis.

That couple might leave $1.3 million behind after both spouses died, compared with a bequest of $945,000 if the couple had no SPIA, NAVA says.

The couple in that scenario includes 2 65-year-old spouses with $500,000 in available retirement assets, a total post-retirement income goal of $50,000 per year that increases by 2.5%, and $30,000 in annual Social Security income, NAVA says.

The actuaries who performed the analysis assumed the couple would spend about 31 years in retirement.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.