I read an interesting opinion piece today from the Retirement Income Industry Association. The author was noting how industry members thought only about the products they offer themselves to provide retirement income.
Mutual fund companies think that their funds are the way to satisfy the need for retirement income. Insurance companies on the other hand are all about annuities.
The author went on to say this:
Given the importance of retirement income to baby boomers, the challenge to financial firms is that new players may enter the market, ignore today’s product categories and give many consumers what they’re looking for: a pension substitute and an easier way to keep track of the different pots of money most of us accumulate over the years.
I agree that many boomers are looking for a retirement income plan that works like a pension, assuming that the income benefit is indexed to inflation. Right now, Social Security is the closest to that ideal. The other option: a FAILSAFE RETIREMENT plan.