June 2024
07Jun

A Wealth of Well-Being: A Holistic Approach to Behavioral Finance

By Meir Statman I often note that the biggest risks in life are not in the stock market. If you want real risk, I say, get married. And if you want more risk, have children. People laugh, because the point is obvious. Yet that point is regularly lost when we speak about financial well-being, neglecting life well-being. I was motivated to write my book, “A Wealth of Well-Being, by reflecting on my own financial and life well-being and those of...

June 7, 2024
Articles, Pension design, , ,
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04Jun

US. Here’s How Every Generation Views Retirement in 2024, From Gen Z to Baby Boomers

Different generations might have different viewpoints about retirement based on their values and experiences, but one thing just about every age group agrees on is that you need a lot of money to retire comfortably in the United States. A study released earlier this year by Northwestern Mutual found that every generation except boomers believes it takes over $1 million to retire comfortably. The average retirement savings target is $1.46 million. Here’s how it breaks down by generation: Gen Z: $1.63 million Millennials: $1.65 million ...

June 4, 2024
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03Jun

10 of America’s most affordable retirement spots, where the weather is good and healthcare is top-notch

Realtor.com ranked top retirement spots based on home prices and amenities for older residents. Florida is a popular retirement destination, but California and New Jersey had a few in the top 10. Many seniors face financial constraints and depend on Social Security for retirement. As many Americans prepare to retire, many are wondering just how far their finances can take them. After all, a majority of seniors live on meager incomes, and many are reliant on ever-imperiled Social Security. But for the workers who have put in...

June 3, 2024
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May 2024
31May

Improving Pension Information: Experimental Evidence on Learning Using Online Resources

By Denise Laroze, Charles Noussair, Gabriela Fajardo, Ximena Quintanilla, Paulina Granados, Pedro Vallette & Mauricio López Tapia When planning for retirement, deciding what to do with one's pension funds is a high-stakes, one-shot decision. It is often described in technical jargon that few people understand. Not surprisingly, individuals find the pension selection process stressful. As a consequence, many pay for advice or miss out on benefits they are eligible for because of the opacity of the retirement process. We consider...

May 31, 2024
Articles, Pension design, , ,
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31May

Pensions in Europe: Which countries are best and worst for retirement?

There are significant pension disparities across Europe. Euronews Business has found a strong positive correlation between financial confidence in retirement and the level of monthly pensions. Earnings-related pensions overwhelmingly constitute the primary source of income for Europeans aged 65 and older. However, less than half of EU consumers are confident that they will have enough money to live comfortably throughout their retirement. In several countries, this confidence level falls to 30% or even less. This raises concerns about pension adequacy. Protecting...

May 31, 2024
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31May

Retirement Survey & Insights Report 2023. Diving Deeper into the Financial Vortex

By Goldman Sachs Plotting a path through the Financial Vortex is essential for an employee’s retirement journey and can be achieved with help from their employer. There is no defined path or solution that solves retirement for all individuals, yet the challenge of retirement saving presents employers with an opportunity to provide employees more integrated, personalized, effective solutions to help their retirement goals. Get the report here

May 31, 2024
Books, Books, Reports, System Characterization, , ,
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17May

Female Labor Supply and Rural Pension Eligibility in Brazil

By Gaurav Khanna, Margaret Lay, Stephanie Lee & Benjamin Thompson In 1991, Brazil expanded its rural old-age pension to cover millions of previously uncovered women, conditional on work requirements.  We use a difference-in-differences approach to show that this expansion drastically increased women’s employment by nine percentage points, or 26 percent.  This increase in labor force participation occurred among women who were immediately age-eligible, and among younger cohorts that would be eligible in the future. These results illuminate the capacity of...

May 17, 2024
Articles, Labor Market, , , ,
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16May

Centenarians Are on the Rise: How Living Longer Will Affect Society’s Economics

By JayDee Vykoukal   According to a Pew Research Center analysis of United States Census Bureau data, the number of Americans aged 100 and older is expected to more than quadruple over the next three decades. The population is projected to reach 422,000 in 2054, up from an estimated 101,000 in 2024. These centenarians aren’t the only aging demographic on the rise. The 2020 U.S. Census count found one in six Americans is over 65, compared to less than 1 in 20 in 1920. Older...

May 16, 2024
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15May

Retirement Planning: Does It Make Sense to Plan to Age 95?

BY  TED GODBOUT   A new report out this week provides an interesting take on whether it makes sense for retirees and near-retirees to base their retirement planning under the industry-wide assumption that they will live to age 95. Instead of simply using age as a factor in determining how much to save and spend for purposes of retirement planning, the report by HealthView Services examines the financial impact for clients of planning to age 95 versus beginning the discussion using actuarial...

May 15, 2024
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13May

Rise in ultra-long mortgages ‘poses risk to UK retirement prospects’

Homebuyers are increasingly being forced to “gamble” with their retirement prospects to get on the housing ladder by taking on ultra-long mortgages lasting beyond the end of their working life, it has been claimed. More than a million mortgages that stretch beyond the borrower’s state pension age have been arranged in the last three years, figures show. The data, obtained via a freedom of information (FoI) request by the former Lib Dem pensions minister Steve Webb, show the proportion of home...

May 13, 2024
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