New study shows how to protect retirees from financial risks
The article explores how to best share financial risks between different generations. By analyzing data from the US, the researchers show that providing certain types of financial support can help older people manage risks in their savings. This support acts like insurance, similar to using put options in investing. Even without a risk-free option, these transfers can improve overall financial well-being. When certain conditions are met, the support can be effective even without extra incentives for the working generation.