High-age implications of postretirement risks.

The retirement world of the future is challenging because of the decline in defined benefit plans, low savings rates in the United States, increased longevity and the failure of many people to effectively plan for retirement. Drawing on a variety of studies and public opinion surveys, the authors of this article explain why a system that relies too much on people providing for themselves will have segments of the population who have inadequate retirement incomes due to a number of gaps, which pose the most risk at advanced ages. These gaps can occur because of difficulties in managing postretirement risk, acquiring inadequate savings in the first place and problematic public perceptions about retirement income risks.