In the News

Title

Low Returns, Longevity Mean Greater Retirement Savings Rate Needed

Document Type

Article

Publication Date

2-9-2017

Abstract

Investors facing inflated asset prices, and the lower expected future returns they imply, must accept the reality that they will need to save more to maintain their lifestyle in retirement, researchers conclude.

In a research report, “Required Retirement Savings Rates Today,” written by David Blanchett, CFA [Chartered Financial Analyst], CFP [Certified Financial Planner], head of retirement research at Morningstar Investment Management LLC; Michael Finke, Ph.D., CFP, dean and chief academic officer at The American College of Financial Services, and Wade Pfau, Ph.D., CFA, a professor of retirement income, also at The American College, say a low-return environment and increases in longevity will affect optimal savings rates for investors.