By Jeff Cruz

Essay Overview

There are three main sources for a guaranteed lifetime income: First, Social Security Administration (SSA) benefits cover nearly all workers and are adjusted for inflation. Next, defined benefit (DB) pension plans are offered to fewer and fewer people, but still represent another important source of guaranteed lifetime income for tens of millions of families. And third, Americans are increasingly being auto-enrolled into or are opting to use defined contribution (DC) plans, like 401(k)s or individual retirement accounts (IRAs), to accumulate retirement savings to supplement Social Security benefits. Individuals then have to make the complex decision on how to spend down their assets, with the option to purchase a wide variety of annuity products to guarantee a lifetime income stream. This essay examines barriers and opportunities for Latinos to increase their retirement security through increasing guaranteed lifetime income.