scholarly journals Navigating Uncertainties in Accumulation and Decumulation of Retirement Portfolios

2017 ◽  
Vol 3 (3) ◽  
pp. 470
Author(s):  
Sterling Raskie
Keyword(s):  
Retirement Planning ◽  
Longevity Risk ◽  
Retirement Savings ◽  
Retirement Plan ◽  
Significant Obstacle ◽  
The Individual

<p><em>Individuals face many challenges when developing a retirement plan. Hurdles arise at different stages of the retirement planning lifecycle. In the pre-retirement period, a significant obstacle arises when individuals must save for retirement to maximize their utility in retirement. The question of how much to save along with where to save impacts the amount the individual has in retirement. Post-retirement individuals must overcome the obstacle of how to optimally withdraw from their retirement savings to mitigate sequence risk and longevity risk to reduce the chance of portfolio failure. Individuals in post-retirement must develop strategies that not only mitigate these risks but also allow them to enjoy the retirement they have envisioned.</em></p>

scholarly journals Financial literacy and retirement planning in Canada

2015 ◽  
Vol 16 (3) ◽  
pp. 277-296 ◽  
Author(s):  
DAVID BOISCLAIR ◽  
ANNAMARIA LUSARDI ◽  
PIERRE-CARL MICHAUD
Keyword(s):  
Educational Attainment ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Retirement Savings ◽  
Risk Diversification ◽  
Percentage Points ◽  
Lower Educational Attainment

AbstractIn this paper, we draw on internationally comparable survey evidence on financial literacy and retirement planning in Canada to investigate how financially literate Canadians are and how financial literacy is linked to retirement planning. We find that 42% of respondents are able to correctly answer three simple questions measuring knowledge of interest compounding, inflation, and risk diversification. This is consistent with evidence from other countries, and Canadians perform relatively well in comparison with Americans but worse than individuals in other countries, such as Germany. Among Canadian respondents, the young and the old, women, minorities, and those with lower educational attainment do worse, a pattern that has been consistently found in other countries as well. Retirement planning is strongly associated with financial literacy; those who responded correctly to all three financial literacy questions are 10 percentage points more likely to have retirement savings.

Selecting Mutual Funds for Retirement Accounts (A)

2018 ◽  
pp. 1-17
Author(s):  
Phillip A. Braun
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
First Year ◽  
Retirement Savings ◽  
Defined Contribution ◽  
Management Turnover ◽  
Risk Return ◽  
Retirement Plan ◽  
Retirement Accounts ◽  
Northwestern University

Alice Monroe, a 30-year-old married mother of two, was an admissions officer at the Kellogg School of Management at Northwestern University. She was just completing her first year of service at Northwestern and qualified for the university's 403(b) retirement plan. It was early October 2017, and she had until the end of the month to decide if and to what extent she would participate in Northwestern's retirement plan–that is, how much of her salary should she put into the retirement plan, and into which mutual fund or funds should she allocate her savings? The case includes background on defined contribution and benefit plans as well as mutual funds. It goes into detail about Northwestern's retirement plan, including data on the performance of 15 of the plan's core mutual funds. The case also provides each fund's strategy, Morningstar Rating and Morningstar Category, expense ratio, assets under management, turnover rate, and historical performance for the last 10 years. Using modern portfolio theory (diversification and risk-return trade-off) and with an understanding of mutual fund fees and the tax advantages of retirement savings, students will decide how much Alice should invest and in which mutual funds.

Orthopaedic Surgery Resident Financial Literacy: An Assessment of Knowledge in Debt, Investment, and Retirement Savings

2019 ◽  
Vol 85 (4) ◽  
pp. 353-358 ◽  
Author(s):  
John D. Jennings ◽  
Courtney Quinn ◽  
Justin A. Ly ◽  
Saqib Rehman
Keyword(s):  
United States ◽  
Orthopedic Surgery ◽  
Financial Literacy ◽  
Financial Education ◽  
Retirement Planning ◽  
The United States ◽  
Financial Knowledge ◽  
Retirement Savings ◽  
Willingness To Participate ◽  
Formal Curriculum

Most orthopedic residents carry significant debt and may enter their practice with little knowledge of business management, minimal retirement savings, and overall poor financial literacy. This study aimed to gauge financial literacy, debt, and retirement planning in United States orthopedic surgery residents. Willingness to participate in formalized financial education was also assessed. Eighty-five allopathic orthopedic surgery residents in the United States completed a 14-question anonymous online survey in 2016. The survey assessed demographic data, self-assessed financial knowledge, amount of credit card debt and loans, preparation for retirement, and willingness to participate in formal didactic education on these topics. Most respondents derive their financial knowledge from personal research (51%), whereas only 4 per cent have a formal curriculum. Despite most respondents reporting more than $200,000 in outstanding loans, only 31 per cent create and stick to a budget. Few programs offer retirement advice, and 48 per cent of respondents save $0 toward retirement. Eighty-five per cent of residents expressed interest in learning about personal investment, savings, and retirement planning. Orthopedic surgery residents carry significant debt and do not achieve their high-income potential until disproportionately later in life. Only 4 per cent of residents have formal training in investing, personal finance, or retirement despite a majority who desire such a curriculum. In fact, almost 75 per cent of those surveyed felt less prepared for retirement than their peers outside of medical training. This study suggests a role for formal financial education in the orthopedic curriculum to prepare residents for retirement, improve financial literacy, and enhance debt management.

scholarly journals Diseminasi Pengelolaan Keuangan Rumah Tangga: Perencanaan Pensiun

2020 ◽  
Vol 2 (2) ◽  
pp. 72
Author(s):  
Farida Komalasari ◽  
Eko Ganiarto
Keyword(s):  
Quality Of Life ◽  
Financial Literacy ◽  
Pension Fund ◽  
Financial Institution ◽  
Retirement Planning ◽  
Community Empowerment ◽  
Household Management ◽  
Retirement Plan ◽  
The Future

<p>This community empowerment activity is intended to improve people awareness in financial household management, especially in retirement planning.  By doing a good retirement planning, it is expected that people will have a good quality of life during their retirement.  This activity is also intended to increase households’ financial literacy.  This activity was done at Sunday, 3 November 2019 at 4-6pm, participated by 18 members of Komunitas Ibu RT 09 RW 03 Kelurahan Dukuh Kecamatan Kramat Jati Jakarta Timur.  Lecturing, true or fals, guided teaching, question &amp; answer, simulation and discusion were used along this activity.  All participants were actively following the all program, from the beginning to the end of session.  Questions and opinions from participants show their awareness on the importance of retirement planning.  At the end of session, the participants agreed that having a good retirement planning before entering the retirement period is important.   Retirement planning is needed to reach a good wealth during the retirement.  The problem is that they do not have an enough knowledge to make a good retirement planning.   Therefore, a guidance and help are needed to increase their financial literacy, especially in composing a retirement plan.  Some topics that could be delivered to them in the future are introducing investment instruments and selecting a Financial Institution Pension Fund.</p>

scholarly journals Use of Advisors and Retirement Plan Performance

2020 ◽  
Vol 31 (2) ◽  
pp. 342-356
Author(s):  
Rui Yao ◽  
Weipeng Wu ◽  
Cody Mendenhall
Keyword(s):  
Portfolio Allocation ◽  
Objective Measures ◽  
Retirement Savings ◽  
Defined Benefit ◽  
Defined Contribution ◽  
Retirement Plans ◽  
Cross Sectional ◽  
Retirement Plan ◽  
Research Gap

As defined contribution (DC) plans become more popular than defined benefit (DB) plans, American workers are increasingly responsible for their retirement savings. Because retirement plan participants' portfolio allocation is constrained by the available funds in the plan, the construction of a plan's investment menu has become extremely important. No research has evaluated fund selection in retirement plans or compared plans involving an advisor with self-directed plans. To fill this research gap, this study employs cross-sectional, nationwide data that include 5,570 retirement plans with 100 or more participants in 2013, 2014 and 2015. Results show that in most cases, using advisors is not related to plan performance. Plan sponsors should require advisors to periodically evaluate the performance of plans under their management using objective measures.

Financial literacy and retirement planning in Japan

2011 ◽  
Vol 10 (4) ◽  
pp. 637-656 ◽  
Author(s):  
SHIZUKA SEKITA
Keyword(s):  
Educational Attainment ◽  
Interest Rates ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Retirement Savings ◽  
Risk Diversification ◽  
Simple Question ◽  
Lower Educational Attainment

AbstractThe level of financial literacy is not high in Japan. Although a majority of respondents were able to correctly answer a simple question about interest rates, more than half were not able to correctly answer a question about risk diversification. Many respondents stated they did not know the answer to the financial literacy questions, which might indicate that Japanese are very cautious and only answer when confident in their response. Women, the young, and those with lower incomes and lower educational attainment have the lowest levels of financial literacy, and financial literacy increases the probability of having a retirement savings plan.

Financial planning for retirement: the role of income

2019 ◽  
Vol 37 (6) ◽  
pp. 1419-1440
Author(s):  
Milagros Vivel-Búa ◽  
Lucía Rey-Ares ◽  
Rubén Lado-Sestayo ◽  
Sara Fernández-López
Keyword(s):  
Driving Forces ◽  
Pension Plans ◽  
Retirement Savings ◽  
Content Type ◽  
Working Lives ◽  
Future Income ◽  
Wealth Inequalities ◽  
The Individual ◽  
The Impact

PurposeThe purpose of this paper is to study the driving forces of both the decision to participate in individual pension plans and the amount of money allocated to such plans. Moreover, this paper evaluates the potential role that income plays, which has not previously been considered in depth in the financial literature.Design/methodology/approachBased on a sample of the Spanish population over the period 2008–2015, this paper estimates probit and tobit models, using 165,791 observations. The driving forces of private retirement savings comprise demographic, financial and socio-economic characteristics.FindingsThis paper confirms the impact of socio-demographic and economic variables on participation and monetary contributions to pension plans. It also confirms that income plays a non-negligible role. Moreover, empirical evidence reveals that the effect of gender is related to the income stratum to which the individual belongs.Originality/valueRetirement planning plays a key role in retirees’ future income and several countries have emphasised the importance of private individual savings to supplement the minimum provided by public pension schemes. The previous literature has concluded that those who plan their retirement end their working lives with three times the wealth of non-planners. Consequently, analysis of whether people are saving enough for their retirement can contribute to avoiding future wealth inequalities among retirees. Spain is one of the countries with the greatest inequality in income distribution, so this issue is of even greater interest.

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