Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Annuities Take Longevity Risk Off the Table, According to Hegna


Economist Tom Hegna is well respected in the financial industry.  He works hard to inform people about longevity risk and how it can impact everyone’s financial future.  In LifeHealthPro’s “We have to take longevity risk off the table,” Daniel Williams wrote about a conversation he had with Mr. Hegna.  As we live long lives, we are going to feel the impact of long term care costs, stock market declines and the potential of running out of money.  Mr. Hegna says that “longevity risk is the number one risk in retirement” and that “we have to take longevity risk off the table”.  He certainly isn’t trying to scare anyone in his speeches, but is simply trying to help ensure that more Americans prepare for retirement in a way that seeks to eliminate longevity risk.

Three ways to take that longevity risk off the table are with Social Security, pensions and annuity products.  Social Security is great, but you might not get enough to cover all of your monthly expenses in retirement.  And while many people are confident that Social Security is secure, others worry that it won’t be around as long as we live.  Pensions are one of the perfect retirement plans, but they are rapidly disappearing as a benefit given by employers.  Annuities are products that anyone can buy to help them eliminate longevity risk.  Despite the fact that there are naysayers saying that annuities are bad, they are a very useful product in many retirement plans.  Mr. Hegna expressed frustration with people like Suze Orman and Dave Ramsey who speak vehemently against annuity products.  He says that the examples they always use are those of variable annuities that have high withdrawal rates.  Not all annuities are created equal.

One of the biggest problems currently facing the annuity industry is that of perception.  Mr. Hegna says that industry leaders need to use math and science in order to overcome this problem.  In studies done by Nobel Prize winners, they all point to annuities as the way to guarantee lifetime income.  The accumulation of wealth is certainly important for a secure retirement.  But that seems to be where everyone’s focus remains.  Creating income is the real issue and the one that needs to be addressed systemically.  Mr. Hegna believes that even with the shift to fewer workers putting money in and more retirees taking money from Social Security, the system will survive.  But with the near extinct pension program, and especially a potential overpromise related to government employee pensions, annuities are more important than ever.  Speak with an expert to see how annuities can help you eliminate longevity risk in your financial planning.

Written by Rachel Summit

Follow Rachel, aka Finance Mama, on Twitter and Google+

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).