As the number of Americans nearing retirement continues to increase, the importance of ensuring a stable income and safeguarding against longevity risk is crucial. Moreover, navigating retirement savings options, including mutual funds and other complex financial products, remains challenging for both investors and their financial advisors. To address this challenge, financial professionals including advisors and asset managers are turning to an innovative approach to retirement income strategies: target-date funds combined with annuities.

These strategies combine the familiarity of target date funds with the risk protection provided and predictability provided by annuities. For those planning to retire and annuitize some or all of their savings, these solutions offer individualized retirement options that can be highly effective. However, understanding their complexities and evaluating market conditions are essential before making decisions

For ways to assist clients in managing their retirement spending and to explore the evolving role of annuities within target date funds, access the full report.