We examine the implications of persistent low real interest rates and wage growth rates on individuals nearing retirement. We begin by reviewing the concept of r star – the long-term real, safe interest rate that is neither expansionary nor contractionary – and presenting recent estimates...

Financial planners assume that retirees have a strong preference for consistent, predictable spending. Their widely used rule of thumb, the 4% rule, was developed to identify the maximum spending level that could be maintained throughout retirement. In stark contrast, the standard advice from...

Recent research has documented that delaying the commencement of Social Security benefitsincreases the expected present value of retirement income for most people. Despite this research,the vast majority of individuals claim Social Security at or before full retirement age. ClaimingSocial...