Nicholas Pension Consultants
Compensation Strategies Group, Ltd.
Nova 401(k) Associates
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|Missing the Target? Retirement Expectations and Target Date Funds|
Byeong-Je An and Kunal Sachdeva, via SSRN
Dec. 14, 2021
"[R]espondents systematically underestimate their long-run labor participation on average by 4.8 years ... [E]rrors in expectations compound over time, costing the median respondent 4% of total wealth, equivalent to 0.2% a year. These estimates suggest that the choice architecture of target-date funds should be modified to improve the financial adequacy of future retirees."
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