Most economists, including me, agree that longevity insurance would make sense for a lot of people.

The lesson from behavioral economics is that people only save if it's automatic.

I think one lesson we have to learn is that there's a lot more risk than we're giving credit to, a lot more what economist calls systematic risk.

I think we also have learned the lesson that we have to have better incentive structures.

If people just put away what's left at the end of the month, that's a recipe for failure.

The reason is they failed to learned the primary lesson we should have learned from when Long Term Capital Management went belly up ten years ago. That is, investments that seem uncorrelated can be correlated simply because we're interested in it.

It would be much more consumer friendly for them to beep you when you swipe your card that says, uh-oh you're over your limit, are you sure you want to use that?