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
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
Do early 401(k) loans hurt retirement savings? Beshears and coauthors use Vanguard data to show that most workers who access their plans before retirement continue contributing, often increasing savings to rebuild their balances. Their research findings suggest that short-term access to DC plans doesn’t necessarily come at the expense of long-term retirement security.…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
Retirement planning and saving differ across racial/ethnic groups due to different longevity expectations, report Abigail Hurwitz and Orly Sade of the Hebrew University of Jerusalem, and Olivia S. Mitchell at the University of Pennsylvania. Via RetireSecure blog.…Read More
Is there an upper limit on human lifespans? Some forecast extreme longevity, but others are less optimistic, explains TIAA’s Benny Goodman. Via RetireSecure blog.…Read More
Expanding DC plan investment options, particularly default investments, could boost participation and reduce risk for employees, suggest Cameron Ellis of the University of Iowa, Thorsten Moenig of Temple University, and Jacqueline Volkman-Wise of Saint Joseph’s University. Via RetireSecureblog. …Read More
