Defined terms for the annuity market and lifetime income landscape.
A required minimum distribution (RMD) is the minimum amount an individual must withdraw each year from a tax-advantaged retirement account beginning at a statutory age, calculated based on the account balance and the individual's remaining life expectancy under IRS tables.
Retirement income adequacy is the sufficiency of a participant's projected income in retirement — from plan savings, Social Security, and any other sources combined — to fund an intended standard of living across an uncertain lifespan.
Retirement readiness is a participant's preparedness — measured across accumulated balance, projected income sources, expected expenses, and expected lifespan — to sustain their intended standard of living from retirement onward.
