Question

For Early Retirees, the nest egg needs to last longer and tide them over until _______ kicks in and even beyond that. Thus they are usually more risk averse than pre-retirees

Answer 1

For early retirees, their nest egg needs to last longer until retirement income kicks in. They are usually more risk averse than pre-retirees.

Step-by-step explanation:

For early retirees, the nest egg needs to last longer and tide them over until retirement income kicks in and even beyond that. Thus, they are usually more risk averse than pre-retirees.

Retirement income can come from a variety of sources, such as Social Security benefits, pensions, annuities, or investment portfolios. These sources provide a steady stream of income to cover living expenses during retirement.

Given the uncertainty of future financial needs and the desire for stability, early retirees may choose to prioritize conservative investment strategies that focus on preservation of capital, rather than taking on higher levels of risk for potential higher returns.