How Well Do Retirees Assess the Risks They Face in Retirement?

TitleHow Well Do Retirees Assess the Risks They Face in Retirement?
Publication TypeReport
Year of Publication2022
AuthorsHou, W
Document NumberIB#22-10
InstitutionCenter for Retirement Research at Boston College
CityChestnut Hill, MA
KeywordsFinancial risks, health costs, Retirement
Abstract

The brief’s key findings are:

Retirees face many financial risks, such as outliving their money, investment losses, and unexpected health expenses.
How important are these risks and how well do retirees perceive them?
The analysis finds a big disconnect between how actual and perceived risks are ranked:Actual: 1) longevity; 2) health; and 3) market.
Perceived: 1) market; 2) longevity; and 3) health.
In short, retirees overestimate market volatility and underestimate how long they will live and their health costs.

URLhttps://crr.bc.edu/briefs/how-well-do-retirees-assess-the-risks-they-face-in-retirement/
Citation Key12533