Developing and Disseminating Financial Guidelines for Retirement Planning

Abstract

Financial planning and decision making for retirement are challenging tasks. The effects on retirement finances of expected health-care costs, tax-based preferences for retirement saving, retirement benefits, housing values, and asset allocation mean that many retirees must play the roles of—or at least assess the advice from—doctor, accountant, realtor, and stockbroker. Retirees’ financial planning efforts are often hampered by lack of basic financial literacy, confusing or misleading financial products, high levels of debt, and the additional burdens of dependent adult offspring or advanced-age parents. There is substantial evidence that older households often lack financial literacy and often make poor financial choices, which can result in real economic hardship. The authors discuss criteria for developing and disseminating a single, comprehensive graphic to retirees and near-retirees to help bolster financial acumen and security.