New research finds a hidden price of trust in financial decision-making. Investors allocate much more to trust funds associated with highly trusted organizations, even when less-trusted institutions offer identical funds, potentially leading investors to sacrifice substantial long-term wealth. Read more about the price of trust in financial behavior here.…Read More
New research from the TIAA Institute examines retirement systems across 11 countries and finds that retirees are more likely to choose lifetime income when it is integrated directly into the retirement system. Their findings offer important lessons for policymakers, plan sponsors, and financial advisors seeking to strengthen retirement security in the United States.…Read More
New research by economists Carlo Pizzinelli and Maria M. Tavares finds that older workers are often better positioned than younger workers to benefit from artificial intelligence, particularly in occupations where experience, judgment, and interpersonal skills remain essential. Their findings may help an aging workforce navigate technological change.…Read More
How closely are health and retirement linked? New research by Professors Slavov and Chung finds that health shocks experienced by an individual or their partner often lead to earlier-than-planned retirement, while retirement itself can bring modest health improvements when not driven by illness. Their findings emphasize the importance of incorporating health risks and trajectories into retirement planning and policy design.…Read More
How risky are health care costs in retirement? Dr. Banerjee finds that while most retirees face manageable, predictable expenses, a small share experience severe financial shocks, especially from long-term care. His research highlights that these risks are highly concentrated and tend to arise late in life, underscoring the need for better planning and stronger policy solutions around long-term care.…Read More
Can aging societies still grow? Dr. Park and Dr. Shin argue that they can, thanks to the “silver dividend” created by healthier older workers staying economically active. However, their research finds that the main drag on growth comes not from labor shortages but from weaker productivity gains, emphasizing the need for policies that foster innovation and efficiency in an aging world.…Read More
What drives individuals to avoid annuities, even when they offer protection against outliving their savings? Hallstein, Liebler, and Maurer highlight the role of loss aversion, showing how fear of “losing” an investment can increase demand for costly guarantees and reduce lifetime income. Their findings underscore the importance of clearer communication and better product design to help individuals and advisers make more informed retirement decisions.…Read More
What steps can solo-agers take to protect their independence as housing and financial needs evolve? Anna Rappaport highlights the critical role of proactive housing decisions, financial planning, and support network development in later life. Her insights suggest what thoughtful preparation and practical actions individuals and advisers can take to help solo-agers age with confidence and stability.…Read More
Today, the definition of “financial inclusion” has broadened to encompass access to banking institutions and financial products and services. But this broad financial network is not inclusive in the U.S., and millions remain unbanked or underbanked. Prof. Bogan addresses this inequality in her recent work, analyzing key obstacles to retirement savings that perpetuate inequality and offering a path forward towards financial inclusion.…Read More
What drives financial well-being across different measures and life outcomes? Through their research, Professors Coats and Bajtelsmit find that income, financial confidence, financial literacy, and patience play a central role in shaping how people save, plan, and build wealth. Their findings suggest that financial advisers and educators can improve outcomes by implementing several practical points.…Read More
