Tag: asset decumulation
There is a risk that people will spend and consume too little. For the last few years, my colleagues and I have been focusing on the drawdown aspect of 401(k) plans. The time has come when the first cohort of workers will retire entirely reliant on the accumulations in their 401(k)s and IRAs (mostly rollovers…
Hoarding retirement savings is a risk. At a recent conference, retirement experts concluded that the lack of an easy drawdown mechanism in 401(k) plans was the major challenge facing the 401(k) system. In 2014, the Treasury Department and the IRS issued guidance that made longevity annuities accessible to 401(k) plans and that enabled target dat…
