In a special reprise edition of the Lifetime Income Series, Jim and John zero in on retirement income strategies. As we know, the three-legged stool of retirement income sources; Social Security, pensions, and savings, has changed. Social Security has been becoming less favorable, with growing means testing and a loss of benefits. Pensions have changed, with the disappearance of the defined benefit plans, except for the public sector. And savings have been ravaged with zero percent interest rates and a policy of financial repression. Jim and John discuss the problems with each leg of retirement income and then look at alternate strategies. They illustrate many of these issues with the case study of Bill and Jan Smith and offer some potential solutions. The guest this week is Wade Pfau Ph.D., CFA and a Professor of Retirement Income at The American College. Professor Pfau discusses the probability-based and safety-first schools of thought on retirement income planning.
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