Overview of market risks for near-retirees and retirees – Retirement Research Center

Reported The main findings are:

• People are increasingly relying on 401(k) assets for retirement, so they need to have a good understanding of market risks.
• the extent to which the price of income and assets rise;
• New survey results from older retired investors show that many are too pessimistic about stocks: they underestimate returns and overestimate risks.
• However, comparable data indicate that their actual allocation is higher than their stated preferences.
• This mismatch may reflect the growing role of target date funds, as 401(k) defaults, which may benefit investors given their views on stocks.
• Financial advisors can also play a constructive role, but it depends on how much clients pay attention to their advice.