Newsmakers

Meir Statman, Glenn Klimek Professor of Finance, speaks about the current spending resolutions that retirees are being told about by financial services firms in an article by The Royal Gazette. Statman emphasizes the traditional way of viewing money as an asset that needs to be saved (which is beneficial for those who are young) and refutes the idea that it is the best strategy for those who are retired. The article further provides statistics showing how much those who are retired are saving when they should be spending.

“When we speak about spending resolutions, we usually speak about how to encourage people to spend less,” said Statman. “This is right for most young people. But with many older people, the problem is too little spending because of a reluctance to dip into capital.”

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