Turner, John A

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Now showing 1 - 4 of 4
  • Publication
    Labor Market Uncertainty and Pension System Performance
    (2009-09-01) Mitchell, Olivia S; Turner, John A; Mitchell, Olivia S; Turner, John A
    The financial market crisis has prompted policymakers to devote substantial attention to ways in which capital market risks shape pension performance, but few analysts have asked how shocks to human capital shape retirement wellbeing. Yet human capital risks due to fluctuations in labor earnings, employment volatility, and survival, can have a profound influence on pension accumulations and payouts. This paper reviews existing studies and offers a framework to think about how human capital risk can influence pension outcomes. We conclude with thoughts on how future analysts can better assess sensitivity of pension plan outcomes to a labor income uncertainty.
  • Publication
    Why Don’t People Annuitize? The Role of Advice Provided by Retirement Planning Software
    (2010-05-01) Turner, John A; Turner, John A
    This study investigates whether users of 25 free retirement planning programs available on the internet are advised to annuitize, in situations where it clearly would be advisable to do so. Our main conclusion is that the programs generally do not advise it, which contributes to other reasons why people do not annuitize. Many programs ignore longevity risk. Those which do deal with longevity risk tend to handle it by simply setting a high age for the end of the planning period—95 or older. Phased withdrawals planned to an advanced age are an inefficient way of dealing with longevity risk.
  • Publication
    How Does Retirement Planning Software Handle Postretirement Realities?
    (2009-09-01) Turner, John A; Turner, John A
    Many risks must be managed during the post-retirement period. This chapter explores retirement planning software that provides individuals and advisors the opportunity to perform a range of calculations to help them in retirement planning. We link results from surveys and research by the Society of Actuaries to show how the software handles post-retirement risks. We find that approaches to managing these risks are often not well-integrated.
  • Publication
    Rating Retirement Advice: A Critical Assessment of Retirement Planning Software
    (2010-04-01) Turner, John A; Turner, John A
    This paper develops a rating system for internet-based free retirement planning software that assumes unsophisticated users. The rating system takes into account two of the most important sources of retirement income—Social Security and investments—and the two main determinants of retirement income needs—the length of the planning period and the target replacement rate or target retirement income. We illustrate the rating approach with a sample of programs, and we find that these often tend to do a poor job in the way they handle Social Security benefits. Some encourage older persons to assume large benefit cuts, which we view as unlikely.