Sunday, January 28, 2007

Are your clients saving too much for retirement?

"A Contrarian View: Save Less And Still Retire With Enough," a recent New York Times article by Damon Darlin, says some economists believe that the financial services industry is encouraging over-saving by individuals.

A Boston University professor, Laurence J. Kotlikoff, is among those economists. "Mr. Kotlikoff’s calculations showed that Fidelity’s online calculators typically set the target of assets needed to cover spending in retirement 36.4 percent too high. Vanguard’s was 53.1 percent too high. A calculator offered by TIAA-CREF, one of the largest managers of retirement savings, was 78 higher than his calculation."


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