Living in a Material World
Last week, I aired the claims of Gaobo Pang and Sylvester J. Schieber's (PS) paper, American Workers' Retirement Income Security Prospects: A Critique of Recent Assessments. That article painted a relatively rosy picture of American retirement planning, stating that pessimistic projections understate the amount of "catch-up" savings that will occur in the final years before retirement. The paper also argued for lower income-replacement ratios than are commonly modeled, in the 60% to 70% range as opposed to 85%. According to the authors, the combination of higher-than-expected savings and lower-than-expected needs will fix much of America's retirement "crisis."
Financial writer (and advisor) Bill Bernstein is having none of that.
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John Rekenthaler does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.