New research shows that combining a fixed indexed annuity with traditional retirement portfolio strategies significantly improves the chances of creating sustainable income throughout retirement.
Security Benefit Corp., a Topeka, Kan.-based Guggenheim Partners company, released this finding in a series of papers, “Planning With Certainty: A New Strategy For Retirement Income.” The papers describe the results of research the insurer conducted with an independent actuarial consulting firm exploring various joint and single life retirement scenarios.
The tests were designed to determine the best allocation among different investment choices to optimize chances for retirement planning success, specifically not running out of income and leaving assets behind. Using an approach similar to “modern portfolio theory,” the analysis considered allocations among three modern strategies:
• Mutual fund systematic withdrawal (base case)
• Variable Annuities (VAs) combined with mutual fund systematic withdrawals, and