How Important Is Asset Allocation to Retirement Security?
June 5, 2012
The brief’s key findings are:
- Financial planners often tout asset allocation to boost retirement preparedness.
- But the typical household nearing retirement has less than $100,000 in savings.
- Hence, asset allocation lost when tested against three alternatives: working longer, taking a reverse mortgage, and controlling spending.
- Even for households with substantial financial assets, asset allocation is less important than one would expect.
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Citation
Munnell, Alicia H., Natalia S. Orlova, and Anthony Webb. 2012. "How Important Is Asset Allocation to Retirement Security?" Issue in Brief 12-11. Chestnut Hill, MA: Center for Retirement Research at Boston College.
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