Retirement planning has two phases: a wealth accumulation phase followed by a wealth depletion phase. Considerable attention currently is being paid to phase 1 issues, with a focus on developing methods to encourage retirees-to-be to accumulate greater wealth. This is an important issue that deserves the attention it is receiving. But phase 2 is equally important, and has been neglected. It is the subject of this article. The wealth depletion segment of the retirement system has three components: financial asset management, annuities and HECM reverse mortgages. All three have important dysfunctional features. Because they operate independently of each other, furthermore, potential synergies between them that could benefit retirees do not exist. This article describes each of the systemic dysfunctions that now characterize the phase 2 retirement system. In each case we describe the modifications of the system that are needed to eliminate the dysfunction, how the modified system would work, and how it would benefit retirees. We place special emphasis on the now-absent synergies that would arise between the different components of the system. The modified system we describe would be of little interest to billionaires or street people. The target retirees have wealth but not enough to assure that they won’t run out if they live long enough. The typical retiree we use in our simulations is 63, has $1 million of financial assets and a paid-for house worth $500,000.
1010 Affordable Housing Architecture Asia Australia bonds Borrowing Constraints California Canada China coastal markets cold storage Colombia Commercial Brokerage Commercial Real Estate commissions Congestion consumer bias covid-19 CRE credit card market Credit Default Swaps Credit Insurance Credit Risk Transfers Culture data centers Debt Market Demand Demographics Density Development Discrete Choice disruption Diversity e-Commerce Economic Corridors economic policy economics education election studies Equity Market Ethnic Factors Europe Fannie Mae financial asset management Foreclosures France Freddie Mac general equilibrium Global global economy Global Financial Crisis great depression Great Recession healthy buildings Hedonic hospitality Housing & Residential housing boom Housing Disease housing prices Housing Supply Identity Income Inequality India inflation Inter-generational mobility interest rates Investing Lagging Regions land use regulation Language life sciences Macroeconomics Microeconomics Migration Minimum Payments Mixed-Use Mobility moral hazard mortgage insurance mortgage market Mortgage Rates Mortgages Multi-family Nation Building Non-Traditional Mortgages office sector pension funds Placed Based Policies Political Risk Price Discovery public health public policy Public Schools real estate brokerage Real Estate Investment Real Estate Investment Trusts Recession Rental Retail Retirement reverse mortgages risk management risk-shifting single family housing Slums Sorting South America Spatial Regions spillover effect stimulus package Sub-Prime Mortgages Supply Chains Sustainability Technology telecommunications unemployment United States Urban Urbanization welfare work from home