Journal of Retirement最新文献_第4页

The Appropriate Age for Transition to Managed Accounts in a Qualified Default Framework: It Might Be Earlier than You Think 在合格的默认框架中过渡到托管帐户的适当年龄:可能比您想象的要早

Journal of Retirement Pub Date : 2022-10-08 DOI: 10.3905/jor.2022.1.125

Keith Gustafson, Christopher R. O'Neill

{"title":"The Appropriate Age for Transition to Managed Accounts in a Qualified Default Framework: It Might Be Earlier than You Think","authors":"Keith Gustafson, Christopher R. O'Neill","doi":"10.3905/jor.2022.1.125","DOIUrl":"https://doi.org/10.3905/jor.2022.1.125","url":null,"abstract":"In this article, we review evidence of retirement under-saving and potential solutions, as well as empirical evidence regarding investor reaction to negative market returns. We present new corroborating evidence from fund flows around the recent volatile market events in 2020 that indicates a rising loss aversion, just as asset levels become significant with investors approaching retirement. We surmise that recent trading activity implies an aggregate investor preference for target-date fund (TDF) portfolios within a 20-year time horizon of retirement, with a volatility profile that is potentially too conservative for requisite savings in later years, due to concomitant lower portfolio return potential combined with the aggregate under-saving problem. This mismatch in investor preferences is compounded by a reactionary tactical investor trading strategy that essentially buys high and sells low. We propose that the rising investor loss-aversion problem can be mitigated by including guaranteed retirement income products in the asset mix in a defined contribution qualified default investment alternative setting to provide for the desired downside risk protection against extreme events, or else by shifting investors from a TDF to a managed account (MA) setting in later years to accomplish the same goal, or by utilizing both approaches in tandem. Given the evidence of MA utilization in increasing aggregate savings rates, reducing portfolio risk levels and its potential to meaningfully address the serious measured return drag from investor return-chasing behavior, the potential benefits can outweigh the higher average fee burden for managed advice in many cases. The question then becomes at what age do the benefits outweigh the potential costs, on average. Based upon the recent empirical evidence of TDF flow data from 2020 and data on average account balances, we propose that the appropriate age for automatic transition to managed accounts could be as early as 40.","PeriodicalId":36429,"journal":{"name":"Journal of Retirement","volume":"10 1","pages":"21 - 32"},"PeriodicalIF":0.0,"publicationDate":"2022-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42295903","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

Debt, Illiquidity, and Financial Illiteracy as Barriers to Annuity Ownership 债务、文盲和金融文盲是年金所有权的障碍

Journal of Retirement Pub Date : 2022-10-07 DOI: 10.3905/jor.2022.1.124

Hallie Davis, Andrea Hasler, A. Lusardi

引用次数: 0

The Characterization of Population Preferences and Assessments of Retirement Systems: Evidence from Chile 人口偏好的特征和退休制度的评估:来自智利的证据

Journal of Retirement Pub Date : 2022-10-06 DOI: 10.3905/jor.2022.1.121

Marcela Parada‐Contzen

{"title":"The Characterization of Population Preferences and Assessments of Retirement Systems: Evidence from Chile","authors":"Marcela Parada‐Contzen","doi":"10.3905/jor.2022.1.121","DOIUrl":"https://doi.org/10.3905/jor.2022.1.121","url":null,"abstract":"This article studies population preferences and assessments of retirement systems in Chile. I use a unique survey that allowed me to construct individuals’ evaluations of different pillars within retirement systems (e.g., individual, solidary, and state-funded pillars), and their evaluations of current system performance and private pension fund administrators using attitudinal responses. The results imply that social well-being is an important consideration among high-income, highly educated individuals. College-educated individuals were significantly (6.8%) more likely to agree with a solidary pillar funded by contributors, while 1% increases in income significantly increased the likelihood of preferring a system with a solidary component (by 0.5%). This group was also more demanding with regard to the performance of the system and pension fund administrators. The findings also demonstrate that gender is a crucial determinant: men were consistently more likely than women to agree with the three-pillar model and social investments. This result suggests that women should be a specific target in communication campaigns when reforms are being designed and implemented.","PeriodicalId":36429,"journal":{"name":"Journal of Retirement","volume":"10 1","pages":"7 - 32"},"PeriodicalIF":0.0,"publicationDate":"2022-10-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47648451","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 0

guest column How Would a Universal Auto IRA with Emergency Savings Impact Overall Wealth and Liquid Asset Accumulation? 嘉宾专栏带紧急储蓄的通用汽车个人退休账户将如何影响整体财富和流动资产积累？

Journal of Retirement Pub Date : 2022-09-20 DOI: 10.3905/jor.2022.1.120

Warren Cormier, David C. John, James Watt

引用次数: 0

The Life-Cycle Model Implies that Most Young People Should Not Save for Retirement 生命周期模型暗示大多数年轻人不应该为退休储蓄

Journal of Retirement Pub Date : 2022-08-28 DOI: 10.3905/jor.2022.1.119

Jason S. Scott, J. Shoven, S. Slavov, John G. Watson

{"title":"The Life-Cycle Model Implies that Most Young People Should Not Save for Retirement","authors":"Jason S. Scott, J. Shoven, S. Slavov, John G. Watson","doi":"10.3905/jor.2022.1.119","DOIUrl":"https://doi.org/10.3905/jor.2022.1.119","url":null,"abstract":"Retirement policy is often predicated on the belief that more saving is always better, at least at the margin. This belief is used to justify the increasingly widespread practice of automatically enrolling workers in employer-sponsored defined contribution plans. However, the conclusion that individuals do not save optimally for retirement requires a benchmark for optimal behavior. A reasonable benchmark that is often used in the academic literature is the life-cycle model, in which rational individuals allocate resources over their lifetimes with the aim of avoiding sharp changes in their standard of living. We argue that, under realistic assumptions, the life-cycle model implies that most young people should not save for retirement. First, high-income workers tend to experience wage growth over their careers. For these workers, maintaining as steady a standard of living as possible therefore requires spending all income while young and only starting to save for retirement during middle age. Second, low-income workers, whose wage profiles tend to be flatter, receive high Social Security replacement rates, making optimal saving rates very low. Finally, for all workers, low real interest rates make a front-loaded lifetime spending profile optimal. We show that the welfare costs of automatically enrolling younger workers in defined contribution plans—if they are passive savers who do not opt out immediately—can be substantial, even with employer matching.","PeriodicalId":36429,"journal":{"name":"Journal of Retirement","volume":"10 1","pages":"47 - 70"},"PeriodicalIF":0.0,"publicationDate":"2022-08-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46702117","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

引用次数: 1

Adaptive Retirement Planning, Sustainable Withdrawals, and Deferred Annuities 适应性退休计划，可持续提款和递延年金

Journal of Retirement Pub Date : 2022-08-18 DOI: 10.3905/jor.2022.1.118

An-ning Chen, S. Haberman, Stephen Thomas

引用次数: 0

Editor’s Letter 编辑的信

Journal of Retirement Pub Date : 2022-07-31 DOI: 10.3905/jor.2022.10.1.001

Brett Hammond, A. Webb

引用次数: 0

guest column Retirees in Profile: What We Can Learn from Four Distinct Spending Segments 嘉宾专栏《退休人员简介：我们可以从四个不同的支出领域学到什么》

Journal of Retirement Pub Date : 2022-06-21 DOI: 10.3905/jor.2022.1.116

Warren Cormier, P. Hess, Dominika Türkcan