Reframing the retirement saving challenge : getting to a sustainable lifestyle level
Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
Springer Publishing Comp
Abstract
An increasing number of individuals will be unable to retire comfortably amidst an international retirement savings crisis. Research suggests that behavioral factors contribute to inadequate retirement savings. We present a procedure that reframes the retirement savings decision, aimed at alleviating some of the negative effects of the behavioral factors. This procedure shifts the focus from the required wealth at retirement (the future) to the lifestyle an individual can afford to maintain now (the present). A sustainable lifestyle level (SLL) approach is expressed mathematically and illustrated with practical examples. The SLL approach offers a practical tool for retirement planning professionals to present recommendations that are simple and easy to understand for individuals faced with complex retirement planning decisions.
Description
The original publication is available from https://www.springerpub.com/journals/journal-of-financial-counseling-and-planning.html
Keywords
Behavioral economics, Behavioral finance, Choice architecture, Ffinancial planning, Framing effects, Retirement planning