Scott Heise | Source | TIAA

“The biggest financial threat retirees face is that they will outlive their money – called longevity risk. When you think about it, you can’t just consider what you have in your bank accounts and predict whether that’ll be enough. That means you’d have to make withdrawals and hope you outlive (your) money, and hope is not a prudent strategy.”

"People need to diversify their income and make sure their retirement savings don't run dry. In retirement, we recommend that two-thirds of your income should be lifetime income. One type of annuity – a variable annuity – provides both a lifetime income and a hedge against inflation."