From the Field
When the retirement clock gets wound forward
Glide path design should reflect the possibility of early retirement.
2024-05-20 11:10
Justin Harvey, ASA, CFA, Head of Analysis, Multi‑Asset Solutions
Adam Langer, CFA, Senior Quantitative Investment Analyst
Key Insights
  • Many defined benefit plans allow or encourage early retirement by granting participants access to benefits prior to Social Security full retirement age.
  • The decision to retire early can materially increase the amount of wealth needed to sustain income over a longer period.
  • Sponsors evaluating their defined contribution glide paths should account for the wealth and early retirement incentives provided by a defined benefit plan.

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202405-3561066

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