New retirement challenge: safe spending

Many Americans nearing retirement lack a clear plan for converting their 401(k) savings into sustainable income, with most unsure about withdrawal strategies and lifespan estimates. Experts suggest using rules like the 4% withdrawal rule or considering lifetime annuities to ensure income longevity, but many workers underestimate their potential longevity, complicating planning efforts. Increasing education and offering more income conversion options, such as annuities, are recommended to help retirees secure predictable income in retirement.

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