AARP Challenges Conventional Retirement Planning Wisdom

Source: AARP Press Center

FOR IMMEDIATE RELEASE
September 14, 2009
CONTACT:
AARP Media Relations
202-434-2560
media@aarp.org

AARP Challenges Conventional Retirement Planning Wisdom
AARP Public Policy Institute Examines How to Make Your Nest Egg Last a Lifetime

Washington, DC – As increasing numbers of Americans consider retirement, many are not only worried about saving enough, but how to make their savings last throughout retirement. Today, AARP releases two documents examining and challenging the rules of thumb when it comes to planning for retirement.

Today’s retirees face a market downturn, falling home values and diminishing retirement savings which forces many to answer tough questions like: When should I claim Social Security? Should I get an annuity? What should I do with my home or mortgage? The rules of thumb no longer apply.

“When most individuals think of retirement, they think about how to save enough money,” said Jean Setzfand, AARP Director of Financial Security. “We have not spent nearly enough time discussing the best ways to take that money and turn it into an income stream that lasts throughout retirement. Our tip sheet challenges conventional thinking and offers general guidance about how to make the best decision for you and your circumstances.”

The AARP tip sheet, “Money Matters: Spending Down Your Assets in Retirement,” addresses key questions like the ones above regarding planning for retirement and walks individuals through key actions steps – including resources and general guidance depending on an individual’s situation.

“Conventional wisdom may not be right for everyone,” said Janet McCubbin, who heads economic research at AARP’s Public Policy Institute. “More and more retirees today have to manage their own assets—instead of just cashing a pension check—and that’s not easy. A look at what experts have discovered can serve as a practical guide.”

AARP today released a second report, “Making Your Nest Egg Last a Lifetime,” that takes a fresh look at common financial decisions in retirement planning. The report was written for AARP by Anthony Webb of the Center for Retirement Research at Boston College.

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 35.5 million readers; AARP Bulletin, the go-to news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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