Key Findings of October Three’s 2026 Lifetime Income Report

October Three’s 2026 Lifetime Income report explores the complex challenges of modern retirement savings and the potential solutions to deliver greater security and comfort.  

Below are a few of the key takeaways from our 2026 report. To see a full breakdown and details on potential solutions, download the full 2026 Lifetime Income Report here.  

1. Saving alone is not the best solution 

Traditional retirement advice, which states that one should save aggressively to build a big nest egg, doesn’t address the risks retirees face when converting savings to real lifetime income. Our report found that retirees with a guaranteed monthly lifetime income are 30% more likely to report high levels of financial security than those relying on self‑managed savings. “Saving more” is not enough. What matters is how those savings are converted and structured.  

2. Psychological stress remains high for self‑managed retirees 

Many retirees without a lifetime income report frequently worrying about outliving their savings, which affects their quality of life, spending behavior, and emotional well‑being. This suggests that financial risk isn’t just theoretical (market risk, inflation). It becomes a daily psychological burden when retirees must self-manage income over decades. 

3. Guaranteed income correlates not only with security, but better lifestyle and well‑being 

Retirees receiving guaranteed lifetime income are more likely to maintain lifestyle freedom and avoid lifestyle cutbacks compared to peers who manage withdrawals themselves. In other words: lifetime income doesn’t just reduce anxiety; it improves quality of life. 

4. Insurer‑based or personal annuities often under-deliver vs. pooled pension‑style plans 

Converting savings into lifetime income via retail annuities or other post‑retirement income products tends to yield 20–30% less monthly income than a comparable in‑plan pension (pooled, defined‑benefit style) solution due to fees, commissions, profit margins, inefficiencies, and lack of risk pooling. This undercuts a common assumption that “if I save enough, I can annuitize when I retire and be fine.” But this math often does not work out. 

5. Most retirees and workers underestimate the complexity and risk of self-managing withdrawals 

60% of retirees aged 65 will pass away either 5+ years past their life expectancy, or 5+ years prior, leaving retirees to determine how to stretch their money to last a lifetime without knowing how long that lifetime will be. 

Because human lifespans vary widely, planning based on average life expectancy is risky. Pooled lifetime‑income models mitigate this variability, while self‑managed plans leave individuals exposed to longevity and market risk.  

6. There is a demand for lifetime income solutions, though adoption remains low 

Despite much greater financial security and well‑being among those with guaranteed lifetime income, many retirees still rely on self-managed savings. This points to a mismatch between what retirees need (security) and what retirement plans offer (accumulation and distribution flexibility). Lack of awareness and structural barriers still limit the adoption of lifetime-income solutions. 

A different route to the same destination 

The route to retirement may have changed over time, but the goal of achieving security and comfort has not. The 2026 Lifetime Income Report explores our latest steps in the retirement journey while offering potential solutions to current challenges. Download the full 2026 Lifetime Income Report to see our complete findings.