Health problem Quote by Paul Taylor
![“Basing a [retirement] system on people’s voluntarily saving for 40 years and evaluating the relevant information for sound investment choices is like asking the family pet to dance on two legs,” writes Teresa Ghilarducci, an economics professor and retirement policy expert at the New School for…” quote by Paul Taylor](https://sms4smile.com/quotes/img-quotes/223/paul-taylor-21504_health-problem_basing-a-retirement-system-on-people-s-v_2947798.jpg)
““Basing a [retirement] system on people’s voluntarily saving for 40 years and evaluating the relevant information for sound investment choices is like asking the family pet to dance on two legs,” writes Teresa Ghilarducci, an economics professor and retirement policy expert at the New School for Social Research. “First, figure out when you or your spouse will be laid off or be too sick to work. Second, figure out when you will die. Third, understand you need to save 7 percent of every dollar you earn. Fourth, earn at least 3 percent above inflation on your investments. Fifth, do not withdraw any funds when you lose your job, have a health problem, get divorced, buy a house or send a kid to college. Sixth, time your retirement account withdrawals so the last cent is spent on the day you die.”2 Most””
About This Quote
Source Article: Retirement Policy Commentary, New School for Social Research, 2022
Relying on voluntary long‑term savings without accounting for life‑event risks is as unrealistic as expecting a pet to perform human tricks.
In simple terms: Retirement planning must consider unpredictable life events and realistic returns.
Key Takeaway
Plan for flexibility and realistic expectations.
Themes
retirement planning
risk management
financial realism
Mood
cautious
analytical
Type
policy
analytical
critical
When to use this quote
- career planning
- health emergencies
- market volatility
- family financial decisions
Key Concepts
human behavior
economic policy
longevity risk
Questions to Reflect On
- How can retirement systems better accommodate unexpected life changes?
- What realistic return assumptions should be used?
A Different Perspective
Assumes individuals can perfectly predict and control complex life variables.
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