Tag: retirement spending
Recent studies have found that past generations drew down their financial assets very slowly in retirement, leaving much of their savings untouched throughout old age. This finding always seemed obvious to me, given that older cohorts had lifetime income from defined-benefit plans to cover their spending and could keep their financial assets for late-life medica…
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…
