Saving for retirement

Nearly Three-Quarters of Retirees Experience a Financial Shock

Submitted on Wed, 10/26/2016 - 3:56 pm

72% of retirees experience at least one financial shock, and for one third of them, it depletes their savings by 25%, according to the Society of Actuaries’ (SOA) 2015 Risks and Processes of Retirement Survey. The types of shocks and unexpected expenses most often reported by retirees include:

The 80% Assumption, Maybe Not

Submitted on Sun, 07/28/2013 - 8:50 am

Planning for retirement is usually over-simplified and full of bad assumptions, like this one: "Assume you will need 70%-80% of what you earned pre-retirement." Well you won't be sending your children through college and maybe you will have your mortgage paid off. And you won't have commuting costs, or still be trying to save for retirement. But on the other hand you will have much higher medical expenses, you may be sending your grandchildren through college, you may be providing financial assistance to your children or your parents.

A crisis for the very old: They're outliving their assets

Submitted on Sun, 07/28/2013 - 8:27 am

Economist James Poterba of MIT put it all together with colleagues at Dartmouth and Harvard's Kennedy School and estimated that about 46% of Americans die with less than $10,000 in assets, many of them lacking even home equity and relying almost entirely on Social Security. The results can be measured in more than merely dollars and cents. Poterba's paper found that this group is "disproportionately in poor health," in part because they have no resources to cover medical expenses outside Medicare.