Given the widespread transition from defined benefit (DB) to defined contribution (DC) retirement plans, Americans increasingly face the challenge of assessing whether their saving behavior is likely to provide a secure retirement.
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Senior faculty fall into three groups—25% who expect to retire by a normal retirement age; 15% who expect to, but would prefer not to, work past normal retirement age; and 60% who would like to and expect to work past normal retirement age.
Americans reaching traditional retirement ages during the past two decades and today face a different retirement environment than did prior cohorts of workers. In response to a very different environment, retirement patterns have changed dramatically since the mid 1980s.
A growing literature shows how consumers make mistakes in a variety of different settings pertinent to financial decision-making.
The findings discussed here suggest that people with lower levels of education, income, and financial literacy rely far more heavily on employers, coworkers, and friends, than they do on cost fundamentals, when choosing pension funds.
Advisors need to understand the way investors think about decisions and the process through which decisions are made.
Individuals face an array of planning issues as they grow older and approach retirement. Sixty percent of near-retirees in higher education have consulted with a financial advisor or other financial professional within the past two years regarding their retirement and preparing for it.
Are individuals are well equipped to make financial decisions, i.e., do they possess enough financial literacy to function effectively in today’s complex marketplace?
This paper examines the two sets of factors controlled by a worker and affecting a person’s Social Security benefit.