Social Security was never meant to cover all your expenses in retirement, and unless you work in the public sector, pensions are rare. As people live longer and retirement savings face challenges, new investment options are emerging. One such option is the last-survivor-takes-all annuity, a modern twist on the historical tontine concept.
The SECURE 2.0 Act makes major changes to the required minimum distribution rules, prompting individuals to rethink their retirement planning strategies. Moshe Milevsky, finance professor at York University in Toronto and consultant to financial industry companies, has teamed up with a firm to innovate new retirement products, including last-survivor-takes-all annuities.
Tontines, which had their heyday over 300 years ago, are enjoying a revival among those who fear they will outlive their savings. This unique investment structure offers the potential for higher payouts to surviving participants as others pass away, making it an attractive option for retirees looking for guaranteed income.
What's it like to convert a LIRA to an annuity? Follow along as this financial journalist does it for the first time, shedding light on the process and considerations involved in choosing a last-survivor-takes-all annuity as part of a retirement plan.
Over 100 years ago in America — before Social Security, before IRAs, corporate pensions, and 401(k)s — there was a ludicrously popular (and controversial) tontine scheme. Today, modern versions of tontines offer retirees a way to pool their resources and receive steady income in retirement.
Comparing payout options is fun to imagine, but also a useful way to think about taxes, investment opportunities, and human nature. Last-survivor-takes-all annuities provide a unique approach to retirement income planning, offering the potential for increased payouts over time.
How much retirement income can you get from an annuity? A life annuity can offer guaranteed retirement income payments for as long as you live, providing financial security and peace of mind in retirement. Last-survivor-takes-all annuities offer a twist on this concept, rewarding surviving participants with larger payouts.
Does the last survivor still get the pot? Here's how modern tontine products vary from the original versions and how they differ from traditional annuities. Understanding the nuances of last-survivor-takes-all annuities can help retirees make informed decisions about their financial future.
