Retirees are too pessimistic on their investments — and it's costing them

… In retirement, you may need to replace as little as 35% of your former salary if you have paid off the mortgage, shed all child-care and employment costs, and no longer need to save, argues Fred Vettese, chief actuary at Morneau Shepell, a Canadian consulting firm. Kotlikoff says the common wisdom to save early and often fails to recognize the difficulty of doing so while young and burdened with expenses—as compared to the relative ease of putting something away in higher-earning years when you have fewer expenses…

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