New financial calculators help users make smarter retirement savings decisions
The article discusses how people can use financial calculators to plan for retirement without inflation-protected pensions. It looks at different ways to balance risk and return when investing, using utility functions. The researchers suggest adjusting these functions to better match how people think and feel about money. They introduce the idea of frictional costs to explain why people are afraid of losing money. The results could help users of financial calculators understand their preferences and make better decisions.