The U.S. retirement system gets a grade of C+, so what can be done to improve it? Wharton Prof. Olivia S. Mitchell and others explain the appeal of a national defined contribution plan, paired with guaranteed lifetime incomes.…Read More
How to avoid outliving your retirement savings? New research by Wharton Prof. Olivia S. Mitchell and co-authors shows that defaulting a portion of retirees’ 401(k) assets into annuities could boost their retirement security, especially for those who don’t understand the risk of outliving their assets.…Read More
Wharton professor Olivia S. Mitchell joins This Week In Business to discuss Fidelity data showing record-high retirement saving rates and how generational trends, employer incentives, and concerns over Social Security and debt are shaping the future of retirement preparedness.…Read More
Limited financial experience and retiree hesitancy are jeopardizing retirement security, warn Wharton Professor Olivia S. Mitchell and co-authors. Their research finds that automatically placing a portion of retirees’ savings into deferred income annuities enhance retirement security for most people, potentially overcoming behavioral factors in their plan design.…Read More
Rising longevity combined with declining financial literacy is leaving many retirees vulnerable to retirement insecurity, explain Wharton Professor Olivia S. Mitchell and co-authors. Her research highlights the urgent need for better annuity options and user-centric advice to help safeguard older Americans’ financial futures.…Read More
Why do many advisors lean toward or avoid annuities, and what can make them rethink? New research highlighted in the NBER Reporter by Wharton Professor Olivia S. Mitchell and co-author Abigail Hurwitz reveals the behavioral and financial forces driving financial advisors’ annuity recommendations, and how client health and other characteristics influence their retirement advice.…Read More
What if a new approach to 401(k) plans could pay retirees stable lifetime incomes, with lower costs and better protection against running out of money? New research by Wharton professor Olivia S. Mitchell and co-authors explores how using deferred lifetime income annuities would reshape retirement wellbeing. …Read More
Despite today’s favorable annuity rates, few retirees select them, and most 401(k) plans don’t “nudge” them to do so. Wharton Professor Olivia S. Mitchell with co-authors Vanya Horneff and Raimond Maurer explore how ‘pretty good’ lifetime payouts from retirement plans can be made more accessible. Their research underscores the need for including deferred annuities as a default approach for 401(k) plans. …Read More
Alternative assets, such as private equity and crypto currencies, are emerging as investments that people can hold in their retirement accounts. Yet retirement assets need to produce returns that can sustain an expected lifestyle throughout retirement. Before adding these new alternatives to retirement portfolios, investors must learn how and why they differ from traditional assets like stocks and bonds and decide if they can bear the risks. Via RetireSecure blog.…Read More
As policymakers and employers consider including annuities in retirement plans, questions remain about their implementation. A recent article explores the trade-offs of making annuities the default in retirement plans. Wharton professor Olivia S. Mitchell offers expert insights on fiduciary risks, participant preferences, and financial literacy gaps, highlighting the balance between…Read More
