Q: We know that emotion plays a role in money, and therefore retirement. What are some ways we can help employees offset less-than-rational emotion and thus make better decisions about their retirements?
A: Behavioral economics have been the subject of much benefits of beginning payments at (or after) full retirement age. Second, consider including education about annuities in your pre-retirement sessions. These can help overcome fears about running out of money. Such fear may lead people to underspend in the early years of their retirement; PIMCO claims that 18 years into retirement many people have spent only 20% of their nest egg. For retirees who remain uncomfortable with annuities, PIMCO recommends education about how a conservative asset allocation may be used to provide some relative stability and hedge against longevity risk. Read the article for more useful information.
RETIREMENT PLANS ARE COMPLICATED. WE MAKE THE PROCESS SIMPLE.
Through flexible and innovative plan design, we provide you with the best customized retirement solutions. We also guide you through the technical industry jargon and regulations to be certain you understand the process and what’s required to both comply and prosper. Contact us today to get started.