How Well Do Retirees Assess the Risks They Face in Retirement?

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The brief’s key findings are:

  • Retirees face many financial risks, such as outliving their money, investment losses, and unexpected health expenses.
  • How important are these risks and how well do retirees perceive them?
  • The analysis finds a big disconnect between how actual and perceived risks are ranked:
    • Actual: 1) longevity; 2) health; and 3) market.
    • Perceived: 1) market; 2) longevity; and 3) health.
  • In short, retirees overestimate market volatility and underestimate how long they will live and their health costs.