Tag: retirement income

Social Security Card: Senior woman holding card in hand on white background

The brief’s key findings are: Households now retiring need to transform their 401(k) and IRA savings into retirement income. One way is to delay claiming Social Security to increase their monthly benefit, using savings to pay current expenses while they wait. In effect, they are buying an annuity from Social Security:  The savings used is the “price” and the increas…

A glass jar full of coins and plant growing through it with some coins and plant leaves.

Abstract Households managing wealth decumulation in retirement must trade off the risk of outliving their wealth against the cost of unnecessarily restricting their consumption. Devising an optimal decumulation plan, reflecting uncertain mortality and asset returns, is well beyond the abilities of most households, who likely rely on rules of thumb. Using numerical optimization, we compar…