Cecil Hemingway on Replacement Ratios, Retirement Thinking, and Our Long Tail Problem

Lee, Shelley A.
May 2009
Journal of Financial Planning;May2009, Vol. 22 Issue 5, p18
Academic Journal
The article presents an interview with Cecil Hemingway, executive vice president and U.S. retirement practice leader with Aon Consulting. He notes that a study conducted by Aon in 1989 found that lower tax rates caused an increase in an employee's replacement ratio, or the fraction of pre-retirement income a person would need in retirement. Tax considerations imply that a middle-income person needs a higher replacement ratio than a low-income earner. He believes that the trend towards defined-contribution plans has increased the possibility that a person might outlive his or her retirement savings.


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