Study shows defined-benefit pension could be retirement lifesaver

Keeping in mind the study was done for Americans with $50,000 to $100,000 of preretirement income, the findings segregate a large portion of those earning less income. So where is the upside, according to Burns?

• Workers can create their own pension. “Just convert some of your retirement savings into a lifetime annuity. A single female without a pension, for instance, has about a 75 percent chance of outliving her assets. With a pension, the odds go down to about 25 percent. The change in the odds is similar for single males. While it’s not so dramatic for married couples (90 percent down to about 54 percent), it’s clear that having a guaranteed lifetime income in addition to Social Security adds major security to retirement.”
• There are too many assumptions. “(The study) was done for Americans for Secure Retirement and like most retirement research was done for the financial services industry. It assumes we need to replace a large portion of the income being earned immediately prior to retirement. Most of us have never had 70 to 85 percent of our income to spend on ourselves.”