Download or read book Retirement Wealth Accumulation and Decumulation written by Olivia S. Mitchell and published by . This book was released on 1997 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analysts have raised questions about current workers' ability and inclination to save" enough for retirement. This issue is of obvious policy interest given the current debate over" reforming national retirement income programs. This paper explores the implications of recent" research regarding retirement wealth accumulation and decumulation for this debate. Our goal is" to identify problems and opportunities in the area of preparedness for retirement."

Download or read book Retirement Wealth Accumulation and Decumulation written by Olivia S. Mitchell and published by . This book was released on 2008 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: Analysts have raised questions about current workers' ability and inclination to savequot; enough for retirement. This issue is of obvious policy interest given the current debate overquot; reforming national retirement income programs. This paper explores the implications of recentquot; research regarding retirement wealth accumulation and decumulation for this debate. Our goal isquot; to identify problems and opportunities in the area of preparedness for retirement.quot.

Download or read book A behavioral finance perspective on accumulation and decumulation of individual retirement wealth written by Moritz Lehmensiek-Starke and published by . This book was released on 2011 with total page 518 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Advances in Retirement Investing written by Lionel Martellini and published by Cambridge University Press. This book was released on 2020-09-10 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: To supplement replacement income provided by Social Security and employersponsored pension plans, individuals need to rely on their own saving and investment choices during accumulation. Once retired, they must also decide at which rate to spend their savings, with the usual dilemma between present and future consumption in mind. This Element explains how financial engineering and risk management techniques can help them in these complex decisions. First, it introduces 'retirement bonds', or retirement bond replicating portfolios, that provide stable and predictable replacement income during the decumulation period. Second, it describes investment strategies that combine the retirement bond with an efficient performanceseeking portfolio so as to reduce uncertainty over the future amount of income while offering upside potential. Finally, strategies using risk insurance techniques are proposed to secure minimum levels of replacement income while giving the possibility of reaching higher levels of income.

Download or read book Rethinking Optimal Wealth Accumulation and Decumulation Strategies in the Wake of the Financial Crisis written by Richard Kopcke and published by . This book was released on 2013 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: A substantial literature has developed models of optimal consumption and asset allocation based on the assumption that stocks and bonds have fixed returns, with normal independent, identically distributed disturbances. Households optimally rebalance from stocks to bonds as they age, reflecting the declining proportion of their wealth that is represented by low-risk human capital.Using annual return data for large-capitalization stocks and corporate bonds covering the period 1926 through 2011, the paper calculates optimal consumption and asset allocation over the life cycle for a household with Social Security benefits and uncertain labor market earnings. It considers the alternative assumptions that stock and bond returns 1) are normally distributed, 2) follow a vector autoregressive path (VAR) with normally distributed disturbances, and 3) follow a VAR with disturbances drawn from a stable distribution. The assumptions have a significant effect on asset allocation. At age 65, the optimal stock allocation is 52 percent, 68 percent, and 55 percent, respectively, for the three alternatives. When returns follow a VAR with stable disturbances, a household with a constant relative risk aversion (CRRA), assuming a coefficient of risk aversion of 2 would require a 1 percent increase in lifetime consumption to compensate it for assuming that the disturbances to returns follow a normal distribution. Households with a coefficient of risk aversion of 5 would require less than 0.1 percent, reflecting their lower accumulation of wealth and smaller stock allocations.

Download or read book Wealth After Work written by William G. Gale and published by Brookings Institution Press. This book was released on 2021-07-27 with total page 406 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pensions and retirement saving plans have helped millions of households build financial security. But tens of millions of people have been left behind, without access to these wealth accumulation vehicles. For many others, the plans they have do not ensure financial security in retirement. The problems that underlie these failures can be addressed. This book proposes concrete, practical ways to make dependable retirement income accessible for all Americans—not just those with means. Individual accounts have eclipsed traditional pensions as the primary vehicle for retirement saving in the United States—a shift that underlies many sources of retirement insecurity. The 401(k) plan and similar accounts have increased financial security for many people but have done nothing for millions more. Many of those who do have such plans are burdened with the need to make numerous saving, investment, and withdrawal decisions that stress their financial acumen. Financial advice that is unbiased, unconflicted, and affordable is often difficult to find. Managing wealth in retirement—especially the need to convert retirement savings into steady income—poses significant challenges that current financial instruments and practices do not adequately address. Economic downturns like the Great Recession and the COVID-19 pandemic increase financial insecurity and make addressing these issues more urgent. Written by noted experts in the field, Wealth After Work offers practical solutions that address these concerns. The proposals show how policymakers can help all Americans gain access to retirement savings accounts, obtain better information about their savings choices, and better manage their wealth in retirement. By proposing solutions that build on, rather than replace the existing system, the book provides a nuanced, practical guide to reform that would benefit all Americans.

Download or read book Retirement Income for Life written by Frederick Vettese and published by ECW Press. This book was released on 2020-10-20 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: Canada’s #1 bestselling retirement income book is now completely revised and updated. Vettese will show you how to mitigate risk and secure your financial future in these unpredictable times. As COVID-19 rocks the economy in an unprecedented black swan event, retirees and those who are preparing to retire need answers to pressing questions about their financial futures. Originally published in 2018, the second edition of Retirement Income for Life, has been completely revised and updated, and now includes: New chapters on early retirement, retiring single, what to do when one spouse dies young, and more. Three strategies for mitigating your personal financial risk in the current downturn in equities and other investment products. Advice on how to plan for (and even benefit from) the coming bear market, resulting from COVID-19, which will create unprecedented equity buying opportunities, possibly as early as 2021. Information on the impact of unbearably low interest rates on annuities and fixed income investments and what to do if you hold them. The reasons retirees should be deferring CPP until age 70 and why the case for this is stronger than ever. Author Frederick Vettese demystifies a complex and often frightening subject and provides practical, actionable advice based on five enhancements the reader can make to mitigate risk and secure their financial future. With over one thousand Canadians turning 65 every day, the cultivation of good decumulation practices — the way in which you draw down assets in retirement, ideally to have a secure income for the rest of your life — has become an urgent matter that no one can afford to ignore.

Download or read book The Fundamental Differences in Accumulation and Decumulation written by Richard K. Fullmer and published by . This book was released on 2015 with total page 5 pages. Available in PDF, EPUB and Kindle. Book excerpt: The trend for individuals to assume more of the burden for funding their own retirements has fostered the development of lifecycle-based investment strategies for the pre-retirement accumulation phase. An individual investing for retirement contributes money periodically during his or her working years to a retirement account, which is invested for the purpose of accumulating enough assets to provide cash flow to fund retirement at some desired age. Target-date funds, for example, are designed for this specific purpose.When clients move from the retirement-saving (accumulation) phase to the retirement-spending (decumulation) phase of their lives, however, their investment objectives may change significantly. Once retired, the individual continues to invest the assets while also drawing on them to fund living expenses.

Download or read book Secure Retirement Connecting Financial Theory and Human Behavior written by Jacques Lussier and published by CFA Institute Research Foundation. This book was released on 2019-09-19 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial science, both quantitative and behavioral, can be used to improve the retirement planning effort. Despite a vast amount of literature on the topic, Secure Retirement recognizes the need to validate this knowledge and develop a comprehensive framework for investors.

Download or read book Retirement Wealth Accumulation written by Olivia S. Mitchell and published by . This book was released on 1997 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Aging and the Macroeconomy written by National Research Council and published by National Academies Press. This book was released on 2013-01-10 with total page 230 pages. Available in PDF, EPUB and Kindle. Book excerpt: The United States is in the midst of a major demographic shift. In the coming decades, people aged 65 and over will make up an increasingly large percentage of the population: The ratio of people aged 65+ to people aged 20-64 will rise by 80%. This shift is happening for two reasons: people are living longer, and many couples are choosing to have fewer children and to have those children somewhat later in life. The resulting demographic shift will present the nation with economic challenges, both to absorb the costs and to leverage the benefits of an aging population. Aging and the Macroeconomy: Long-Term Implications of an Older Population presents the fundamental factors driving the aging of the U.S. population, as well as its societal implications and likely long-term macroeconomic effects in a global context. The report finds that, while population aging does not pose an insurmountable challenge to the nation, it is imperative that sensible policies are implemented soon to allow companies and households to respond. It offers four practical approaches for preparing resources to support the future consumption of households and for adapting to the new economic landscape.

Download or read book Optimal Retirement Asset Decumulation Strategies written by Wei Sun and published by . This book was released on 2013 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: A considerable literature examines the optimal decumulation of financial wealth in retirement. We extend this line of research to incorporate housing, which comprises the majority of most households' non-pension wealth. We use VARs to estimate the relationship between the returns on housing, stocks, and bonds, and use simulation techniques to investigate a variety of decumulation strategies incorporating reverse mortgages. Under a wide variety of assumptions, we find that the average household would be as much as 33 percent better off taking a reverse mortgage as a lifetime income relative to what appears to be the most common strategy of delaying until financial wealth is exhausted and then taking a line of credit. It would be as much as 62 percent better off relative to not taking a reverse mortgage at all. Housing wealth displaces bonds in optimal portfolios, making the low rate of participation in the stock market even more of a puzzle.

Download or read book Saving Wealth and Retirement written by Surachai Khitatrakun and published by . This book was released on 2003 with total page 182 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book When Saving is Not Enough written by Pascal Kieren and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, we investigate the wealth decumulation decision from the perspective of a retiree who is averse to the prospect of fully annuitizing her accumulated savings. We field a large online survey of hypothetical product choices for phased drawdown offerings and annuities. While the demand for annuities remains low in our sample, we find significant demand for phased withdrawal products with equity-based asset allocations and flexible payout structures. Consistent with the product choice, the most important self-reported considerations for the wealth decumulation decision are low default risk in the products they purchase, the size of the withdrawal rates, and flexibility in the timing of their withdrawal. As determinants of the decision of how much wealth individuals are willing to draw down, we identify consumers' attitudes towards future economic conditions, the extent to which they are protected against longevity risk, and their desire to leave bequests. Policy implications are discussed.

Download or read book Wealth Accumulation in the Health and Retirement Study written by Cori E. Uccello and published by . This book was released on 1999 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Choice Chance and Wealth Dispersion at Retirement written by Steven F. Venti and published by . This book was released on 2000 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: People earn just enough to get by' is a phrase often used to explain the low personal saving rate in the United States. The implicit presumption is that households simply do not earn enough to pay for current needs' and to save. We show in this paper that at all levels of lifetime earnings there is an enormous dispersion in the accumulated wealth of families approaching retirement. It is not only households with low incomes that save little; a significant proportion of high income households also saves little. And, a substantial proportion of low income households save a great deal. We then consider the extent to which differences in household lifetime financial resources explain the wide dispersion in wealth, given lifetime earnings. We find that very little of this dispersion can be explained by chance differences in individual circumstances largely outside the control of individuals' that might limit the resources from which saving might plausibly be made. We also consider how much of the dispersion in wealth might be accounted for by different investment choices of savers some more risky, some less risky given lifetime earnings. We find that investment choice is not a major determinant of the dispersion in asset accumulation. It matters about as much as chance events that limit the available resources of households with the same lifetime earnings. We conclude that the bulk of the dispersion must be attributed to differences to in the amount that households choose to save. The differences in saving choices among households with similar lifetime earnings lead to vastly different levels of asset accumulation by the time retirement age approaches.

Download or read book Do the Retired Elderly in Europe Decumulate Their Wealth written by Charles Horioka and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we use micro data on a large number of European countries from the Survey of Health, Ageing and Retirement in Europe (SHARE) to examine the wealth accumulation (saving) behavior of the retired elderly in Europe. To summarize our main findings, we find that less than half of the retired elderly in Europe are decumulating their wealth and that the average wealth accumulation rate of the retired elderly in Europe is positive though relatively moderate (6.6% over a 3-year period). These findings strongly suggest that the Wealth Decumulation (or Retirement Saving) Puzzle (the tendency of the retired elderly to not decumulate their wealth or to decumulate their wealth more slowly than expected) applies in the case of Europe. Moreover, our regression results suggest that bequest motives, generous public pension systems, and the reluctance of retired elderly homeowners to sell or borrow against their owner-occupied housing are the primary explanations for the existence of the Wealth Decumulation Puzzle in Europe. Journal of Economic Literature classification numbers: D14, D15, D64, E21, H55, J14 Keywords: Aged, bequests, bequest intentions, bequest motives, dissaving, elderly, Europe, household saving, inheritances, intergenerational transfers, life cycle model or hypothesis, precautionary saving, retired elderly, Retirement Saving Puzzle, saving, SHARE, wealth accumulation, wealth decumulation, Wealth Decumulation Puzzle.