Uncovering the Gaps in Traditional Retirement Income Strategies - Discussion with David Blanchett

Research and financial planning tools often oversimplify retirement incoming planning, leading to suboptimal strategies and the potential for poor client outcomes. Managing Director and Head of Retirement Research for PGIM DC Solutions, David Blanchett, will review a cohesive series of models designed to improve retirement income projections that incorporate spending flexibility with dynamic spending, and explore how to determine optimal strategies using an expected utility model based on prospect theory. David will illustrate: Common retirement income assumptions made in financial plans, and where critical gaps may exist. A framework for comprehensive retirement income guidance that goes beyond models using basic assumptions, especially approaches relying on probability of success metrics. How different outcome metrics can result in different advice, and how to implement this research into the financial planning tools available today.