These are the people who benefit most from delaying required minimum distributions

‘Do Required Minimum Distribution 401(k) Rules Matter, and For Whom? Insights from a Lifecycle Model:’  Wharton Prof. Olivia S. Mitchell notes that raising the RMD age would have little effect on most people, but would help wealthier retirees leave a legacy, via MarketWatch. Full paper here.Read More

Social Security and Medicare may experience their own COVID-19 side effects, experts say

COVID is eroding the Social Security and Medicare trust funds, already facing looming insolvency. Not much time left to fix the system, cautions Wharton Prof. Olivia S. Mitchell. Via the Philadelphia Inquirer. See also Andrew Biggs’s examination of the social security benefits loophole, “How the Coronavirus Could Permanently Cut Near-Retirees’ Social Security Benefits.”Read More

Why Low Interest Rates Hurt Retirees – Penn Today

The Federal Reserve will keep near-zero interest rates ‘til at least 2023. But long-term low returns will lead people to save less for retirement, dip into retirement savings, and start drawing social security benefits earlier than planned, causing problems down the line, says Wharton Prof. Olivia S. Mitchell via Penn Today.Read More

Why Low Interest Rates Hurt Retirees

The COVID-19 economic crisis is a perfect storm for retirement savings with near-zero interest rates, early Social Security benefit claiming, some using their retirement accounts to make ends meet, and the looming insolvency of the Social Security Trust Fund: Wharton Prof. Olivia S. Mitchell discusses with Knowledge@Wharton.Read More