As the relatively new resource for retirement income — called the “Qualifying Longevity Annuity Contract,” or “QLAC” — becomes more well-known, financial advisors are trying to determine whether to recommend QLACs to their clients. The result so far has been confusion about what a QLAC is designed to do and how it can be used to enhance a retiree’s confidence in late-retirement finances.
The point of a QLAC is simple. It provides an additional source of guaranteed lifetime income to retirees’ portfolios that enhances their ability to invest for growth while providing peace of mind from gaining a source of income that will last as long as they live. More