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