Philip Chao Talks Retirement Lifetime Income on CNBC

401(k) statements will soon include “lifetime income illustrations,” which estimate the monthly retirement income generated by a lump sum of money. Many 401(k) savers will see the disclosures for the first time on their next quarterly statements, due to U.S. Department of Labor requirements.  

Philip Chao, noted investment retirement consultant, shared his expertise on the importance of focusing on retirement lifetime income with Sharon Epperson on CNBC. Chao emphasized that Americans need to pay attention to more than asset accumulation for retirement. It is not enough to simply save, we all should be aware of our own retirement income sufficiency.

While this new data may be a rude awakening, it helps to reframe how people think about 401(k) savings, and hopefully prioritize lifelong savings.