Authoritative Links About QLACs

And Other Retirement Benefits

  • "Longevity annuities—a financial innovation that provides protection against outliving your money late in life—have the potential to reshape the retirement security landscape."
  • "One of the main purposes of the QLAC is to help overcome the 'longevity problem' -- that is, the fact that many Americans will outlast their retirement savings because they're living longer than ever before."
  • "Typically bought at retirement, a longevity annuity offers a guaranteed stream of income beginning in ten or 20 years at a markedly lower cost than a conventional annuity that begins paying out immediately."
  • "The advantage of these QLAC plans is that they provide some guaranteed regular income until death, so they can supplement Social Security. And the deferred feature allows you to generate much more income per dollar invested."
  • "By using a QLAC, you have taken care of income needs post-age 85, and this allows you to free up the rest of the...portfolio for investment, liquidity and legacy planning."
  • Regardless of one's political affiliation, there is no denying that QLACs are good for the country and a positive choice for anyone with retirement plan assets or a traditional IRA.
  • "Simulations...using current asset returns and the 2012 Society of Actuaries tables to predict longevity show that a retiree with a balanced portfolio can reduce the risk of shortfall by as much as 39% through the purchase of a QLAC."
  • “the transfer of longevity risk provides a significant increase in retirement readiness for the longest-lived quartile…. Sensitivity analysis on the QLAC premiums resulting from likely increases in future interest rates provides even more favorable results.
  • More people are living into their late 80s, 90s and even past 100. But longevity isn’t so great if you run out of money.To avoid that risk, you can buy longevity insurance. It’s a special kind of deferred annuity that assures you’ll have a guaranteed income forever, even if you live to 100 or beyond.
  • "About 80 percent of women will be the sole decision-maker for their money at some point; usually later in life. Many fear living so long that they will run out of money and have to depend on family members. There's an insurance product to cover this risk. Qualified Longevity Annuity Contracts (QLACS)..."
  • "Simply, the QLAC is a tax-deferred annuity that avoids the RMD [required minimum distributions]."
  • "Estimating the benefit of avoiding RMDs is complex...the savings at today’s bond rates from a $125,000 QLAC was about $10,000 at a 36% tax rate. This tax savings will.. increase in a higher bond-yield or higher tax-rate environment..."
  • "After the payments begin, the QLAC provides a steady income as long as you live. That may be a while for today’s 70-year-old gal since there’s a 50 percent chance that she’ll live to age 88."
  • "The ability to accumulate mortality credits still means it can be very effective as a fixed income alternative for those who fear they may not have enough money to fund a retirement well beyond their life expectancy. And if retiree intends to spend all of his/her assets anyway, and the only available dollars for retirement are held in an IRA or other retirement account, the QLAC is an effective means to engage in such a strategy. "
  • "What to do if your defined benefit pension plan is frozen?...If you determine that you’ll have a shortfall between the income you’ll need in retirement and your expenses, you’ll have many options...save more, reduce retirement expenses, invest more aggressively, work longer, delay Social Security....You might also consider buying products that provide guaranteed income, similar to that provided by a defined benefit pension plan, such as a qualified longevity annuity contract (QLAC)...".

  • Internal Revenue Service

    IRS_logo

    IRS QLAC Page

     

     

    Internal Revenue Bulletin: 2014-30

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    Link to IRS Longevity Annuity (QLAC) Page

     

     

  • Federal Register

    Federal_Register

    Federal Register / Vol. 79, No. 127 / Wednesday, July 2, 2014 / Rules and Regulations

    Link to Article

     

     

  • Internal Revenue Service

    IRS_logo

    IRS Required Minimum Distributions Page

     

    Internal Revenue Service

    IRS_logo

    Link to Required Minimum Distributions Page

     

  • Internal Revenue Service

    IRS_logo

    QLAC Premium Amount Lifetime Limits Increase

     

    The dollar limitation on premiums paid with respect to a qualifying longevity annuity contract under § 1.401(a)(9)-6, A-17(b)(2)(i) of the Income Tax Regulations is increased from $125,000 to $130,000.

    Link to IRS Document

  • Social Security Administration Benefits Calculator

    download

    Benefits Planner: Retirement

    Your full retirement age and the amount you will receive in retirement vary by year of birth and by when you choose to start receiving benefits.  Follow the link below see the tradeoffs, based on your year of birth.

     

    SSA Benefits Planner Page

     

     

  • Medicare.gov Eligibility & Premium Planner

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    Link to the calculator to receive an estimate of when you’re eligible for Medicare and your premium amount.

    Medicare.gov Benefits and Eligibility Planner

  • CNBC

    CNBC

    Worried You'll OutliveYour Assets? Consider A Longevity Annuity

    Article Link

  • Chicago Tribune

    Chicago_Tribune

    Retirement: How to keep the IRS waiting

    Article Link

  • Employee Benefits Network

    Benefits_Pro

    EBRI modeling shows QLACs boost retirement readiness

    Article Link

  • Employee Benefits Research Institute

    ebridotorg

    How Much Can Qualifying Longevity Annuity Contracts Improve Retirement Security?

    Article Link

  • USA Today

    USA_today

    Why the qualified longevity annuity account is a game changer

    Article Link

  • Motely Fool

    Fooldotcom

    What Is a QLAC, and Why Might You Want One?

    Article Link

  • The Brookings Institution

    1-13-2016 11-24-17 AM

    The Brookings Institution

    Better Financial Security in Old Age?  The Promise of Longevity Annuities.  Scholarly conference notes and video. 

    Conference Notes LInk


     

  • Florida Today

    Florida_Today_logo

    Plan on living a long time? You may want to read this.

    Article Link

  • Kiplinger

    Kiplinger

    New Annuity Product Provides an Income Stream for a Long Life

    Article Link

  • Reuters

    Reauters

    New annuity options to plan around life's biggest unknown

    Article Link

  • Advisor Perspectives

    Advisor_perspectives

    Why Advisors Should Use Deferred-Income Annuities

    Article Link

  • retirement revised

    retirement_revised

    QLACs: A New Tool for Retirement Income

    Article Link


Want to learn more? Check out our videos page to see additional QLACguru videos.  See our calculators to develop an anonymous RMD calculation and estimated QLAC quote. Answer specific questions by going to our Knowledgebase page.  Visit our blogs page for in-depth articles on a variety of topics including how QLACs help with Sequence Risk, how QLACs are similar to and different from Social Security, best practices in buying a QLAC as well as many other topics.

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