Benefits Of Retirement Planning For Retirement

917 WordsJun 28, 20154 Pages
Retirement planning is essential for the future well-being of retirees. Gaining knowledge and perspective on the process will be beneficial. A lack of preparedness may stem from the overwhelming amount of variables affecting and contributing to retirement planning. The following literature reviews provide awareness on planning for retirement. In an article by Burke & Goldman (2015), three strategies are presented to adopt and implement proven features and solutions. First, automatic plan features promote enrollment and escalation to produce better outcomes. Behavioral economics contributes to the effectiveness. Examples includes hyperbolic discounting, heavily discounting the importance of future benefits in favor of immediate action, and loss aversion, motivated by avoiding loss than achieving gains. The second strategy involves instituting the 4 M’s, milestones, measurement, monitoring and management. In order to reach the goal retirement age and income, the future retiree needs to recognize how much is required to save each year. The funding goals are measured to determine if the individual needs to change course or pick up the pace. Monitoring and management occur throughout the process. Third, connecting the dots attempts to overcome the challenges associated with account balances and future income. For a secure retirement, understanding options promotes the ability to achieve better outcomes. To assist in achieving retirement goals, Davidson

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