Qualified Longevity
The risk of outliving one's retirement assets, requiring income sources that will continue for an unknown lifespan that may extend into the 90s or beyond.
Understanding Qualified Longevity
Longevity risk is one of the most significant financial risks in retirement. A 65-year-old has a roughly 50% chance of living past 85 and a meaningful chance of reaching 95. Income sources like Social Security, pensions, and properly structured annuities provide lifetime income. IUL policy loans can continue indefinitely as long as the policy maintains adequate cash value, providing another source of flexible lifetime income.
Why This Matters for Retirement: Understanding Qualified Longevity is essential for making informed decisions about tax-free retirement income strategies. Whether you are evaluating an IUL policy, planning Roth conversions, or comparing retirement vehicles, this concept directly affects your outcomes.