Retirement income planning requires balancing competing priorities and understanding crucial trade-offs. In this episode, Jessica Sclafani, Global Retirement Strategist at T. Rowe Price, introduces their innovative five-dimensional framework for evaluating retirement income solutions.
Traditional retirement planning often focuses solely on accumulation, but converting savings into sustainable income presents unique challenges. Jessica explains how plan sponsors and financial advisors can use this holistic framework to evaluate retirement income options based on five critical dimensions: longevity risk hedge, level of payments, volatility of payments, unexpected balance depletion, and liquidity of balance.
Key Topics:
- How to balance guaranteed income with flexibility needs
- Why one-size-fits-all retirement solutions rarely work
- Using visualization tools to understand product trade-offs
- Considerations for fiduciaries when selecting retirement solutions
- Strategies for participants with existing defined benefit plans
This conversation provides plan fiduciaries, advisors, and individual investors with a powerful framework to make more informed retirement income decisions.
For more insights from this conversation, tune in to the full episode of Tao of Chao on your favorite podcast platform.
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