The Science of Retirement Income Planning” was the topic of the March 19 program at the Rotary Club of Lawrenceville.  Jamie MacKay, Regional Vice President for Transamerica Life, organized his presentation around the following topics:  Where We Are Today, Retirement Income Risks, Today’s Retirement Income Approaches and Considerations, and Moving Forward.  He emphasized several points for the audience. For one, more and more we will see privatization of retirement funds, and that will require intelligent decisions about where investments and savings should go. He noted that not enough people plan ahead sufficiently. Key retirement income risks are health care costs, inflation, volatility of the markets, and increased longevity. In looking ahead, he discussed the advantages of variable annuities and encouraged individuals to delay Social Security retirement until age 70, since that results in an 8% rate of return. He discussed changing attitudes about the 4% rule of drawing out retirement income and briefly talked about asset buckets and asset laddering. During the question period he expressed confidence in the future of Social Security.

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