As the life expectancy increases and our savings drop, there is a good deal of talk about having a retirement fund to last as long as we do. With that in mind, the US Treasury started pushing a new type of annuity. I came across this article on Bloomberg.com; "Betting on Getting to 80: Draw $40,000 a Year Forever, If You Don't Die First" http://bloom.bg/UwlTIb
"With $125,000, a 60-year-old man can buy a policy from New York Life that guarantees an income of almost $45,000 a year starting at age 80. The same $125,000 in a regular retirement account would need to grow at the unlikely rate of 11 percent a year from age 60 to 80 to provide that income, assuming 4 percent is withdrawn annually after age 80."
The new risk you face is not living long enough. "Those who die early help pay for those who live into their 90s and later." Every place you look and everyone you talk to talk about the risk of out-living your retirement savings. First came long term care insurance. This seems like a logical step as life expectancy increases. It surely is not for everyone and I'm not sure how I feel about tying up money for this long but definitely worth considering.