Benartzi on Common Retirement Stumbling Blocks
Investors must think more critically about income replacement in retirement and when to take benefits, says Professor Shlomo Benartzi, chief behavioral economist at Allianz.
Christine Benz: I would like to shift gears and talk about people who are in the decumulation phase of retirement, so people who are getting set to retire, maybe already retired. It's been a very challenging environment. You've got lower interest rates, extra high volatility in the equity markets, as well as the fact that a lot of retirees and pre-retirees just haven't saved what they need to.
I'm wondering if you can discuss some of the key behavioral mistakes that this contingent of people is making and also some ideas for helping overcome them?