The Guaranteed Two-Step Approach To Lifetime Retirement Income

I could bop my head and say “Why didn’t I think of that?” and happily I realized I did think of that! The fact, however, that Forbes magazine is publicizing (click here) this guaranteed lifetime retirement income strategy makes it all the more believable and probable.

The (Stanford Center on Longevity) SCL/SOA (Society of Actuaries) did a new study (click here) using sophisticated analytical methods to analyze the Spend Safely in Retirement Strategy (SSiRS), which is a straightforward, baseline approach for making informed decisions regarding the above retirement situations. This strategy compared favorably to 292 other retirement income strategies that were analyzed. You don’t need a financial planner to implement the SSiRS.

The SSiRS approach to retirement involves just two steps:


  • Optimize your Social Security income.
  • Use your savings to generate a stream of lifetime retirement income to supplement your Social Security benefits.


What’s so good about Social Security?

  • Social Security protects against longevity risk by delivering a monthly income for the rest of your life, no matter how long you live.
  • It protects against inflation risk, since your benefits are increased each year with the cost-of-living adjustment.
  • It protects against investment risk, since your Social Security benefits won’t decrease if the stock market crashes.

What kind of income stream do they recommend to supplement your Social Security benefits?

  • Short-term bond funds
  • Money Market funds
  • CDs
  • Stable Value Funds

I couldn’t have said it any better. Because that is exactly what I have been doing and I show no hint of ever running out of money for the rest of my retirement years. I use a system of CDs and Money Market Funds, along with my monthly Social Security benefit and smallish pension to keep me solvent. I’m currently checking out short term bonds, specifically municipal bonds but I haven’t come to any conclusion yet. These income strategies have kept my savings intact and dependable for future income streams. Granted, I have to adjust my budget accordingly depending on interest rates, but at least my income is stable and guaranteed for the rest of my lifetime.

Since I was the lesser of the two earners in my marriage by taking my Social Security benefit at 62 and delaying the higher earning spouses’ benefit till almost full retirement age, we are guaranteed a larger stream of steady monthly income for life.

I didn’t learn this strategy in any book. It just made common sense to me when I looked at all the facts. The reality that the SCL/SOA now recommends this system as a valuable method for guaranteeing income in retirement just makes it all the better!

As the author of the Forbes article, Steve Vernon, states:

Still worried about your retirement? Take charge! Learn about your options for generating lifetime retirement income. Investigate whether you can use your 401(k) plan to help you implement the Spend Safely in Retirement Strategy. The best person to help fund your retirement is you!

Isn’t the latter a statement I have always said? No one can handle your money better than you. Read. Learn. Understand. Ask questions. And bust-a-move. You know what to do!

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