33 Pages Posted: 18 Feb 2016 Last revised: 26 Feb 2016
Date Written: February 18, 2016
Publicly-available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness. The authors conclude that the advice provided from a majority of these tools is extremely misleading to households, and propose a more systematic approach to tool development by improved choice of input variables. Analyzing professional advisor opinion and theory, critical input variables are identified and recommended. A case scenario is developed incorporating these critical variables and used to test the efficacy of 36 publicly-available retirement planning tools.
Keywords: Retirement planning tools, individual investor, retirement calculators, life-cycle theory
JEL Classification: D14, D12, O21
Suggested Citation: Suggested Citation
Dorman, Taft and Mulholland, Barry S. and Bi, Qianwen and Evensky, Harold, The Efficacy of Publicly-Available Retirement Planning Tools (February 18, 2016). Available at SSRN: https://ssrn.com/abstract=2732927 or http://dx.doi.org/10.2139/ssrn.2732927