Industry News
Print
CRR Issues Brief on Late-Life Financial Risks for Retirees
On January 2, 2019, the Center for Retirement Research at Boston College (CRR) published its brief, What Financial Risks Do Retirees Face in Late Life? According to the brief, the number of individuals in the U.S. over age 75 is increasing and may become more reliant on 401(k) plans rather than Social Security and traditional pensions. As life expectancy increases, more retirees will face late-life financial risks such as: high health costs; difficulty of managing finances due to cognitive decline; and widowhood.
Other key findings include:
- Currently, researchers indicate that these risks severely affect only a small number of retirees, but the impact may become more extensive in the future.
- Some reasons for the expected increase would include rising health care costs; increase in 401(k)s that may be more vulnerable to fraud; and the declining role of Social Security’s widow benefits.
- Since these challenges may be anticipated in advance, individuals, researchers and policymakers may affect the outcome by developing and implementing viable solutions.
The brief is available here.