Morningstar causes uproar with new study that upends everything RIAs assumed about retirement planning, and it all comes down to a number

In July, Morningstar published its latest retirement report, and its author David Blanchett poses tough questions, suggesting advisors risk “havoc” when predicting retirement. But the industry claims it's well prepared.

Author Oisin Breen August 17, 2018 at 8:51 PM

4 Comments

David Blanchett: Someone who expects to retire at 65 may be more likely to actually retire at 63 … [and] the impact can be severe: fewer years of saving combined with a greater need in retirement.

Aaron Klein

David Blanchett

Morningstar

Riskalyze

Larry Shumbres

Totum Risk

Brian Murphy

August 17, 2018 — 10:12 PM

I'd wager that the bigger errors in judgment these days is coming on two fronts - projected expected returns and acceptable probability of success, not from retirement age. But given the complexity around forecasting much of anything, there's more than enough risk to go around.

Doug Rich

August 21, 2018 — 11:22 PM

Assume projected rates of return at 3% and save accordingly.

Jenny Migdal

August 22, 2018 — 7:52 PM

The problem with using EBRI data (“The EBRI states that nearly half (47%) of current retirees were forced into early retirement. Half had to quit because of health problems or disabilities (55%), another 23% had to take care of family members, [and] about 20% were forced into retirement due to changes at their companies, such as downsizing or closure.”) is that it is statistically too broad, and may not apply to our clients' personal demographics - just as life expectancy is more longer for white, college-educated women.

Frank Delgado

August 22, 2018 — 8:48 PM

This is pitchbook garbage. There's nothing "uproarious" or relevatory about this piece. Reall sell-side horsecrap.

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Mentioned in this article:

Morningstar, Inc.
TAMP
Top Executive: Joe Mansueto

Riskalyze
Tech: Other
Top Executive: Aaron Klein

Evestment
Manager Research
Top Executive: Jim Minnick, CEO

Totum Risk
Tech: Other
Top Executive: Larry Shumbres, CEO