Retirement Savings – Games that Asset Managers, Distributors and Investors Play
Prof. Joseph E. Stiglitz, Columbia University
The decisions individuals make concerning retirement savings – both how much to save and how to invest their savings – are among the most important they face in their life time. With increasing longevity, individuals are spending an increasing fraction of their lifetime in retirement. Just seventy five years ago, few people lived much beyond retirement. Today, it is not uncommon for individuals to be retired for thirty years or more – an amount equal to half or more of their working lives.
Unlike other decisions individuals make, they have little foundation on which to base their retirement decisions. When they choose among beef, chicken, and pork, or between one kind of lettuce and another, they can try one or the other, find out what they like and do not like, and make future decisions using the information acquired.
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