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U.S. Retirement Market Outlook
Three themes shaping the U.S. retirement landscape.
2023 Defined Contribution Consultant Research Study
Our third annual study captures retirement views from the defined contribution consulting and advisory community.
Investments
Target Date 20th Anniversary
Celebrating our decades-long passion for helping turn retirement dreams into reality.
Global Market Outlook
Tectonic shifts create new opportunities.
Artificial intelligence: The new electricity
AI has the potential to be the biggest productivity enhancer to the global economy since the rise of electricity.
Insights
Global Market Outlook
Tectonic shifts create new opportunities.
2023 Defined Contribution Consultant Research Study
Our third annual study captures retirement views from the defined contribution consulting and advisory community.
Compliance Support
Qualified plan limits
In October 2023, the Internal Revenue Service released the 2024 dollar limits on certain benefits and contributions to retirement plans and IRAs.
Legislative and regulatory webinars
Stay current on the latest news: watch our legislative and regulatory webinars on demand.
Planning for Spending Volatility in Retirement
Access to liquidity and a focus on growth could mitigate spending increases.
Retirees are likely to experience both increases and decreases in spending levels (e.g., volatility or fluctuations) during their retirement years. By planning for and being prepared to adjust to such volatility in spending, retirees can increase their odds of success in retirement.
Spending can fluctuate for many retirees
Sources of annual spending volatility
If retirees have insufficient liquid assets, they may be forced to take untimely distributions from their longer‑term investment portfolios.
How can employers and retirement professionals help?
See T. Rowe Price’s thoughts on next steps:
Article Resources
Both the Health and Retirement Study (HRS) and the Consumption and Activities Mail Survey (CAMS) are biennial studies conducted in even and odd years, respectively, by the Institute for Social Research (ISR) at the University of Michigan. Our sample followed a group of 1,306 households from 2005 to 2019 who were present in the 2005 CAMS, were between age 65 and 90, and have been surveyed in at least three consecutive waves of the CAMS. The most recent wave was released in August 2021, with 2019 data being the most recent available at the time of our analysis. Measurement or reporting error is a serious concern for studying volatility of spending, and we impose several restrictions on the sample to mitigate the effect of measurement error.
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