PFP2325. Redefining the Optimal Retirement Income Strategy

Retirement is seldom as simple as assumed in research and financial planning tools. This presentation will review a cohesive series of models designed to improve retirement income projections that incorporate spending flexibility implemented with a dynamic spending where optimal strategies are determined using an expected utility model based on prospect theory. This framework can result in guidance that is significantly different than models using basic assumptions, especially approaches relying on probability of success-related metrics.

Learning Objectives:

• Overview common assumptions in financial plans and where gaps may exist
• Explore how different outcomes metrics can result in different advice and how to implement this research in financial planning tools available today