It will now have to adjust to "decumulation", says Henrik Naujoks of Bain & Company, a consultancy.
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Fellowes says relatively few — especially among the three dozen or so robo-advisors out there today — deal with "decumulation," a fancy word for spending.
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He is working on figuring out the decumulation problem of retirement: how to make a pile of savings last for as long as it is needed.
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According to Richard Thaler, the 2017 winner of the Nobel Memorial Prize in Economic Sciences, devising a smart decumulation strategy is a roadblock most retirees encounter, Business Insider&aposs Akin Oyedele reported.
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In an interview with Pimco CEO Emmanuel Roman, Thaler explained why the so-called decumulation problem made a case for annuities and defined-benefit retirement plans — both of which are becoming less popular.
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And so we go on at interminable length talking about basis points (one hundredth of 1 percent), inverted yield curves (when long-term debt pays a lower interest rate than short-term borrowings), and decumulation (how you use your savings to fund your retirement.) As a result, we often scare or confuse people.
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Individuals face a finite life as compared to the theoretically/potentially infinite life of institutions. This fact requires strategies for transferring assets at the end of an individual's life. These transfers are subject to laws and regulations that vary by locality and therefore the strategies available to address this situation vary. This is commonly known as accumulation and decumulation.
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Savers will be able to choose the form of out-payments for the decumulation phase when opening an account. If available, savers will be allowed to modify the form of out-payments. Member States may incentivise different forms of out-payments. Sustainable investment: Providers are encouraged but not forced to take into account environmental, social and governance (ESG) factors in their investment decisions.
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Neaman led on digital skills and transformation, as well as managing Doteveryone's strategic partnerships with organisations including the BBC, BT, Google, Lloyds Banking Group and Sage Group. In 2017 she became the first CEO of the Corsham Institute(Ci), a not-for-profit organisation helping to build people's trust and confidence in technology. She now runs her own consultancy, Neaman Consulting, working with FTSEs, governments, academia and civil society in the UK and internationally on healthtech, diversity, and issues relating to the impact of AI, big data and other technological developments on our social, economic, political and civic lives. Neaman is an executive coach and mentor and is a mentor for PUBLIC's GovStart programme, helping technology startups transform public services. She sits on the Future Focus: Decumulation and Later Life Challenge Group, Chaired by Dame Carol Black, advising the Money and Pensions Service on its 10-year UK Strategy for Financial Wellbeing, and is a member of the Centre for Data Ethics and Innovation’s Health and Social Care Advisory Panel.
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