217 - The Peak 65 Zone Is Here With Jason Fichtner

That Annuity Show

217 - The Peak 65 Zone Is Here With Jason Fichtner

Jason Fichtner, Chief Economist, Bipartisan Policy Center & Executive Director, Retirement Income Institute, Alliance for Lifetime Income joins us today to talk to us about his latest paper. Jason recently released the 2024 edition of “The Peak 65® Zone Is Here – Creating A New Framework For America’s Retirement Security". On our show, Jason Fichtner discusses this paper, the retirement income challenge, and the need for protected income strategies.

He highlights the Peak 65 moment and the retirement challenges faced by the baby boomer generation. Fichtner emphasizes the transition from defined benefit to defined contribution plans and the importance of optimizing Social Security benefits. He also discusses the use of bridge annuities to convert retirement assets into a stream of income. The role of the workplace in retirement planning and the need for prescriptive advice are also discussed.

The conversation explores the need for protected income products in defined contribution plans and the role of defaults in retirement planning. It also discusses the importance of educational tools and calculators for retirement planning and the impact of narrative framing and behavioral elements in retirement decision making. The narrative on retirement income strategies is changing, and there is a need to expand the message and address retirement security for multiple generations.

Takeaways:

The retirement income challenge is a significant issue, with many individuals struggling to convert their retirement assets into a stream of income that will last their lifetime.

The Peak 65 moment is approaching, with millions of Americans turning 65 each year. This highlights the urgency to address retirement challenges and ensure financial security for retirees.

The transition from defined benefit to defined contribution plans has shifted the responsibility of retirement savings and income planning to individuals. This has created a need for protected income strategies, such as annuities.

Employers play a crucial role in retirement planning, as employees often trust them for information and guidance. Employers can provide education and resources to help employees make informed decisions about their retirement income. Protected income products should be included in defined contribution plans to provide retirement security.

Defaults can play a role in retirement planning by offering options that fit the majority of the population, with an opt-out option.

Educational tools and calculators can help individuals understand the benefits of delaying social security and bridge the gap in retirement income.

Narrative framing and behavioral elements are important in influencing retirement decision making.

The conversation on retirement income strategies is shifting towards a holistic approach.

There is a need to expand the message on retirement security and address the challenges faced by multiple generations.

Chapters

00:00 Introduction and Background

00:47 Jason's Roles and Expertise

04:13 Peak 65 and Retirement Challenges

05:11 Financial Challenges and Trust Fund Insolvency

06:03 Transition from Defined Benefit to Defined Contribution

07:25 Personal Experience and Retirement Savings

08:11 Optimizing Social Security Benefits

10:04 Bridge Annuities and Protected Income

11:29 Calculating Retirement Income

16:23 Role of the Workplace in Retirement Planning

21:50 Protected Income Products in Defined Contribution Plans

23:27 The Role of Defaults in Retirement Planning

25:17 Educational Tools and Calculators for Retirement Planning

30:20 Narrative Framing and Behavioral Elements in Retirement Decision-Making

35:02 Changing the Narrative on Retirement Income Strategies

38:03 Expanding the Message and Addressing Retirement Security

39:51 The Retirement Challenges for Multiple Generations

Read more here:

https://www.protectedincome.org/wp-content/uploads/2024/01/Whitepaper_Fichtner.pdf