New Retirement Research (Feb. 25, 2019)

Robert Powell, CFP®

Here are some of the latest reports, surveys, and studies related to retirement, including research into investment fraud, transportation needs and longevity risk.

Investment fraud constitutes a major problem in the U.S. While several studies have investigated various aspects of fraud, none have analyzed victim characteristics of investment fraud. The study Victim Characteristics of Investment Fraud posits five fraud languages that, when used by fraudsters, shut down the perceived need to conduct due diligence in their victims: perceived success; air of familiarity; claim to authority; noble pursuits; and framed authenticity.

Using the Health and Retirement Study data from 2008, 2010, and 2012, the authors found that respondents who were male, were better educated, were single, younger, and possessed greater net worth disproportionately reported being defrauded in the past five years.

Additionally, deploying principal component analysis (PCA) revealed that respondents who made responsible spending decisions, specifically those who were more likely to spend wealth over their entire lives as opposed to spending greater percentages of wealth on short-term needs, were less likely to report fraud. This study lays the groundwork for linking the five fraud languages to various factors such as financial literacy and dependency arising from questions within the HRS data set. Implications for such findings include protecting individuals near retirement from fraud and spreading public awareness about the importance of due diligence in the investment decision process.

More of the latest retirement-related research:

U.S. Government Accountability Office: Retirement Accounts: Federal Action Needed to Clarify Tax Treatment of Unclaimed 401(k) Plan Savings Transferred to States

National Aging and Disability Transportation: Transportation Needs and Assessment: Survey of Older Adults, People with Disabilities, and Caregivers

National Bureau of Economic Research: How Does Supplemental Medicare Coverage Affect the Disabled Under-65 Population?: An Exploratory Analysis of the Health Effects of States' Medigap Policies for SSDI Beneficiaries; Ambiguity Attitudes about Investments: Evidence from the Field; and Retirement Implications of a Low Wage Growth, Low Real Interest Rate Economy

U.S. Department of Health and Human Services: CMS Guidance to State Survey Agencies on Verifying Correction of Deficiencies Needs To Be Improved To Help Ensure the Health and Safety of Nursing Home Residents

University of Pennsylvania, Wharton School, Pension Research Council: Trust and Retirement Preparedness: Evidence from Singapore and Retirement Preparedness and Financial Literacy in Singapore: How Do the Self-Employed Compare?

Oxford Institute of Population Ageing: The demography of super survivors in England and Wales

Max Planck Institute for Demographic Research: Pension adequacy standards: an empirical estimation strategy and results for the United States and Germany

AARP Public Policy Institute: Older Americans Act and Creating the Transportation System We Want: Building Blocks for the Road Ahead

Social Security Administration: Social Security Bulletin (Vol. 79, No. 1, January 2019)

Commonwealth Fund: Targeting High-Need Beneficiaries in Medicare Advantage: Opportunities to Address Medical and Social Needs

SSRN: Sm Bonds-A New Product for Managing Longevity Risk

SSRN: Linking Annuity Benefits to the Longevity Experience: A General Framework

SSRN: Are Disappearing Employer Pensions Contributing to Rising Wealth Inequality?

Got questions about the new tax law, Social Security, retirement, investments, or money in general? Want to be considered for a Money Makeover? Email Robert.Powell@TheStreet.com.

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