Investing in any securities involves some risk, and there is always the potential of losing money. There is market risk, which is the risk that securities may decline in value due to factors affecting the securities markets, as well as longevity risk, which is the possibility that you may outlive your retirement savings.
SURS recognized these common risks that members face when it comes to their retirement plan and created the SURS Lifetime Income Strategy. The SURS Lifetime Income Strategy protects against market downturns and the potential that you may outlive your money by establishing a retirement income plan that is backed by multiple insurance companies. If you deplete the balance in the Secure Income Portfolio while taking monthly guaranteed lifetime withdrawals, each participating insurance company will pay you its portion of your Guaranteed Income Withdrawal Amount for the rest of your lifetime (and for the rest of your spouse’s or civil union partner’s lifetime, if applicable).
Other risks include inflation risk, which is the risk that securities may decline in value due to fluctuations in interest rates. Inflation risk, or purchasing power risk, is the possibility that your investment income will not be worth as much in the future. Investment behavior risk is the risk that investors are influenced by their emotions and make irrational decisions that can disrupt a long-term investment strategy, such as moving in and out of the market and specific asset classes at the wrong time. Opportunity cost represents the potential benefits an investor foregoes by choosing one alternative over another. This may include a young investor keeping cash holdings in a rising, bull market.
The risks associated with the investment options in the core lineup vary, so it is important to carefully review and compare the investment objectives, strategies, fees and risks in the fund fact sheets before making any investment decisions.