At an ERISA Advisory Council hearing for the Dept. of Labor, experts recommended including annuities in defined contribution plans to hedge against longevity risk. Olivia S. Mitchell, a Wharton School professor, supported a default annuity structure that begins payments later in life to simplify financial decisions for older participants.…Read More
In a research paper (Jan. 2023), co-authors Vanya Horneff and Raimond Maurer from Goethe University at Frankfurt, and Olivia S. Mitchell from Wharton underscore the value of integrating deferred income annuities into retirement plans. Their study suggests that waiting until age 70 for Social Security benefits, alongside the SECURE 2.0 Act’s emphasis on annuities, can significantly enhance retirement welfare. This highlights a valuable strategy for retirees to optimize their benefits and improve financial security. …Read More
Retirees who earned more benefit most from deferred income annuities, while the lower-paid fare better by delaying claiming Social Security. Prof. Olivia S. Mitchell makes the case here: Knowledge at Wharton. …Read More
Unlocking retirement potential: 401(k) plans have improved retirement prospects yet many still expose retirement savers to longevity risk. Wharton Professor Olivia S. Mitchell recommends bolstering #DC plans with deferred annuities. Via PIOnline.…Read More
SECURE 2.0 provisions benefit both plan sponsors and plan participants, per Melissa Kahn, Head of Retirement Public Policy at State Street Global Advisors and Olivia Mitchell, Wharton Professor, via SSGA.com.…Read More
People believing they will live longer are more likely to buy annuities, so educating near-retirees about chances of surviving to older ages could help motivate annuitization, report researchers Karolos Arapakis and Gal Wettstein of the Center for Retirement Research at Boston College. …Read More
Should chronological or biological (risk-adjusted) age drive retirement claiming? Longevity research suggests the latter, per Prof. Moshe A. Milevsky of York University, via RetireSecure blog. …Read More
Including deferred income annuities in DC accounts can enhance retiree financial well-being, report researchers Vanya Horneff and Raimond Maurer of the Goethe University Frankfurt, and Olivia Mitchell of the University of Pennsylvania. Via ThinkAdvisor. …Read More
Understanding life expectancy and longevity risk improves retirement related decision making including how people save, invest, and decumulate assets to avoid running out of money in old age find Profs. Abigail Hurwitz and Orly Sade of The Hebrew University of Jerusalem, and Olivia S. Mitchell of Wharton via RetireSecure blog. …Read More
Anna Rappaport on the RetireSecure Blog discusses whether to take your defined contribution benefit as a lump sum or annuity: consider both near and longer-term needs.…Read More
