, Columnist
Baby Boomers Will Live Long But Might Not Prosper
The biggest threat to the majority of retirees will be outliving their nest egg.
While supplies last.
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Investors are constantly reminded that it’s impossible to avoid risk in their portfolio. People are worried about geopolitical risk, interest rate risk, liquidity risk, losing money, volatility, uncertainty and the permanent impairment of capital. The list could go on forever.
For the tens of millions of baby boomers who have retired or will be retiring in the years ahead, there is another risk that could prove far more important. The biggest threat to the majority of retirees will be outliving their nest egg. As life expectancies continue to climb, managing longevity risk will be a key input in the portfolio management and planning for the 10,000 or so baby boomers retiring every day for the next 19 years or so.