Working just one more year beyond the age of eligibility to receive an annuity income stream can increase the annual payout by an average of 9 percent, according to a new report.
This finding was disclosed a November 2012 study, “The Impact of Running out of Money in Retirement,” a joint project of the Society of Actuaries Committee on Post-Retirement Risks and Needs and Risks, the Urban Institute and the Women’s Institute for a Secure Retirement. The study’s sponsors undertook the research to identify what causes people to deplete their retirement resources, understand the risk factors that are behind these events, quantify the risk and identify emerging trends for further research.
Working just one more year beyond the age of eligibility to receive an annuity income stream can increase the annual payout by up to 16 percent for the lowest income earners and by up to 7% for the highest income earners, the research shows.
By working five years beyond the age of eligibility, the lowest income earners can boost their annuity payout by 98%. This compares with increases ranging from 42% to 71% for those in higher “lifetime earnings quintiles.”