Abstract: Few previous studies have explored whether defined contribution retirement saving plans offer sufficiently diversified investment menus, though it is likely that these menus significantly shape workers’ accumulations of retirement wealth. This paper assesses the efficiency and performance of 401(k) investment options offered by a large group of US employers. We show that the majority [...]
Entries Tagged '401(k)' ↓
The More the Better? Characteristics and Efficiency of 401(k) Investment Menus
February 14th, 2009 — 401(k), Research Papers
The Automatic 401(k): Revenue and Distributional Estimates
February 13th, 2009 — 401(k), Research Papers
One of the most promising aspects of retirement saving policy in recent years is the advent of “automatic” or opt-out features in 401(k) plans. Automatic 401(k)s enable saving even if the worker makes no effort to participate in their 401(k) plan. In a 401(k) plan without automatic features, workers have to actively choose whether or [...]
How Much Risk is Acceptable
February 4th, 2009 — 401(k), Defined Benefit, Defined Contribution, Social Security
Papers Introduction: The financial crisis has sparked proposals to reform the retirement income system. One component of such a system could be a new tier of retirement accounts. These accounts would augment declining Social Security replacement rates for low-wage workers and provide a buffer of security for middle- and upper-wage workers who, increasingly, will rely [...]