Do Lifetime Guarantees Drive Better Outcomes?
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Table 1. Proportion of Retirees in High-Confidence Group, by LGI Components and Wealth Segment
Percentage of retirees | Percentage Assigned to “High Confidence” Group | |||||
All retirees | Household Investable Assets | |||||
$100,000 to $499,999 | $500,000 to $999,999 | $1 million to $1.99 million | $2 million or more | |||
Social Security benefits make up: | ||||||
Under 40% of LGI | 0.25 | 0.35 | 0.27 | 0.37 | 0.38 | 0.46 |
40 to <65% of LGI | 0.23 | 0.27 | 0.17 | 0.3 | 0.39 | 0.43 |
65 to 99% of LGI | 0.22 | 0.23 | 0.14 | 0.21 | 0.37 | 0.43 |
100% of LGI | 0.3 | 0.19 | 0.12 | 0.15 | 0.25 | 0.47 |
DB pension benefits make up: | ||||||
None | 0.41 | 0.2 | 0.13 | 0.17 | 0.29 | 0.42 |
Under 60% of LGI | 0.36 | 0.27 | 0.16 | 0.29 | 0.36 | 0.47 |
60 to 100% of LGI | 0.23 | 0.34 | 0.26 | 0.32 | 0.39 | 0.46 |
Annuities (lifetime) make up: | ||||||
None | 0.78 | 0.25 | 0.17 | 0.23 | 0.33 | 0.47 |
Any % of LGI | 0.22 | 0.27 | 0.17 | 0.32 | 0.39 | 0.39 |
All retirees | 1 | 0.26 | 0.17 | 0.25 | 0.34 | 0.45 |