This document shows a chart comparing the monthly life income provided by different options for a $100,000 balance at age 65. Self-insuring longevity risk by withdrawing 4% annually provides a declining income, while retail and institutional annuities provide a stable monthly income but are more expensive forms of insurance.

1. THE KEY
It’s expensive for ANYONE to self-insure
longevity risk
800
700
600 4% withdrawal
500
Payout to age 100
400
(5% interest)
300
Retail life annuity
200
100 Institutional annuity
0
Monthly Life Income at 65 from
$100,000 Balance