Faculty Publications

Title

Introducing the Retirement Wealth and Affordability Indices

Document Type

Article

Publication Date

1-27-2015

Abstract

We face intense vulnerability regarding our lifetime sequence of market returns. This is an important theme that my research about retirement income planning explores. Market performance in the years just before and after our retirement date has a disproportionate impact on our lifetime financial outcomes. For people who plan and save in the same responsible way, some will be able to sustain a high level of spending over their retirement, while others will not. Strong market returns in the years around the retirement date is fortuitous; we have no control over what these returns will be.