Established in 2006, Save for Retirement Week seeks to make employees more aware of how critical it is to save now for their financial future, to promote the benefits of starting to save for retirement today, and to encourage employees to take full advantage of their employer-sponsored plans by increasing their contributions. Mark Miller of Reuters also suggests adding more events to spotlight retirement preparation, such as Social Security Comprehension Week and Work Longer Week.
October 23, 2013
October 18, 2013
Prof. Olivia S. Mitchell, Executive Director of the PRC, speaks to Marketplace about the number of Boomer women leaving the workforce early. This is troubling, she says, because they are losing the chance to grow their Social Security payments: by staying in the workforce just one year longer, Boomers can boost their benefits by 8 percent. Read the story here.
October 4, 2013
Prof. Olivia S. Mitchell testified last week before the Senate Special Committee on Aging about ‘The Changing Face of Retirement Security in America’. Mitchell discussed her research on debt and financial illiteracy among the Baby Boomer generation, and how it is affecting Boomers’ retirement. Watch the video below, and read the complete testimony here.
October 1, 2013
Professor Olivia S. Mitchell, Director of Wharton’s Pension Research Council, recently discussed different types of retirement accounts with Marketplace’s Lizzie O’Leary. Regardless of what type of retirement plan you have, Mitchell notes that it’s important to save as much as you can, and start saving early. Saving 30-40% of your salary would be the best preparation for a retirement that might begin in your 60s and could last till age 100 or beyond. “The point is,” she adds, “the earlier you start saving, then the more time you have for that saving to compound. It’s absolutely critical.”
She also suggests that those still working consider moving to part-time positions in retirement, instead of bowing out of the workforce altogether. One reason is the extra income, and another is the likely health benefit – that is, when people retire very early, they tend to be in poorer health. Mitchell adds: “There’s a feedback effect between continuing to work longer and staying mentally and physically healthy.”
September 26, 2013
Professor Josh Rauh from Stanford is offering a free online class on public pensions that will educate the public on retirement planning and build understanding of the fiscal challenges facing public employee retirement systems. A group project will analyze a public sector pension system and provide a set of implementable policy strategies. Sign up here; class starts October 14.
September 23, 2013
PRC’s newest book will appear in November, edited by Olivia S. Mitchell and Kent Smetters. The volume illuminates the market for retirement financial advice, outlining regulatory developments and behavioral challenges to help consumers, plan sponsors, and regulators make more informed decisions. Experts examine what financial advisors do, what standards they uphold, and what their incentives are. Chapters also cover how people can be protected against bad advice, what constitutes good advice, and whether financial advice actually changes peoples’ financial habits. For more, see ThinkAdvisor’s overview; pre-order here from Oxford University Press.
September 11, 2013
Olivia S. Mitchell and Annamaria Lusardi presented their work on debt on the verge of retirement at the Retirement Research Consortium meeting last month. Presentations are available here.
In The Wall Street Journal, PRC Executive Director, Olivia S. Mitchell, discusses financial literacy among young adults, and how to encourage smart investing habits in teens. In a recent study, co-authored with Annamaria Lusardi and Vilsa Curto, Professor Mitchell found that only 25% of young adults (age 23-28) questioned were able to correctly answer questions about interest, inflation, and risk diversification.
“Young people need a better-equipped financial tool kit, to make a go of it in today’s complex financial markets,” she says. “Teaching financial literacy in the schools would help, and Wharton’s Knowledge@Wharton High School is one free source for teachers and students alike.”
July 18, 2013
In the Wall Street Journal, Prof. Olivia S. Mitchell suggests that newlyweds build a “financial dream list” together to sort out priorities and manage their shared finances. See what she and other experts have to say.
June 20, 2013
A recent paper by Jingjing Chai, Raimond Maurer, Olivia S. Mitchell, and Ralph Rogalla shows that the option of a lump sum payment could persuade workers to claim Social Security benefits 1.5-2 years later. The lump sum would be equal to the value of the deferred benefit payments, but “would be cost-neutral to the system, on average.” According to the paper, the likelihood of individuals retiring later as a result of the lump sum incentive rose from 4% to 49%.