A group that promotes use of annuities in retirement income planning is introducing a tool that Americans as a people could end up using to determine how well, or poorly, they are prepared for post-retirement income needs.
The Alliance for Lifetime Income hired Milliman, an actuarial consulting firm, to develop the new Retirement Income Security Evaluation Score, or RISE Score.
The RISE Score system can assign a user a retirement readiness score, on a scale of 0 to 850, based on answers to a few questions about demographics, retirement savings, projected retirement expenses, and expected sources of retirement income, the alliance said today in a RISE Score launch announcement.
Other groups offer retirement calculators, but the RISE Score tool appears to be the first that provides a retirement income risk indicator, the alliance said.
The alliance and other organizations may eventually be able to use the RISE Score system to compare how various groups of people are doing at preparing for retirement income needs, and to show how people’s retirement income preparation efforts are changing over time.