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Defaulting 401(k) assets into payout annuities for "pretty good" lifetime incomes

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2026

Persistent link: https://econbiz.de/10015654830

Defaulting 401(k) assets into payout annuities for "pretty good" lifetime incomes

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2026

Some US defined contribution plans offer retirees access to an annuity or lifetime income stream as payout options from their 401(k) accounts. Nevertheless, for behavioral reasons, some retirees may hesitate to elect lifetime income streams as a drawdown vehicle. To counter this, plan sponsors...

Persistent link: https://econbiz.de/10015651068

Real-world shocks and retirement system resiliency

2024

Growing awareness of real-world shocks including market downturns, health surprises, and labor market readjustment is calling into question the ability of global retirement systems to remain healthy and sustain future retirees.

Persistent link: https://econbiz.de/10015199149

Fixed and variable longevity annuities in defined contribution plans: Optimal retirement portfolios taking social security into account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

Persistent link: https://econbiz.de/10013557346

Fixed and variable longevity annuities in defined contribution plans : optimal retirement portfolios taking social security into account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

This paper investigates retirees' optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits...

Persistent link: https://econbiz.de/10013554899

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Fixed and Variable Longevity Annuities in Defined Contribution Plans : Optimal Retirement Portfolios Taking Social Security into Account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

Book / Working Paper

Household Investment in 529 College Savings Plans and Information Processing Frictions

Li, James J.; Mitchell, Olivia S.; Zhu, Christina - 2023

We investigate how information processing frictions contribute to household suboptimal saving and investment behavior. We find that 60% of open accounts in college 529 savings plans are invested suboptimally due to high expenses and tax inefficiency. Such investments yield an expected loss of 9%...

Persistent link: https://econbiz.de/10014257538

Optimal Retirement Portfolios with Fixed and Variable Longevity Annuities in Defined Contribution Plans taking Social Security into Account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

This paper examines how two instruments—annuities with lifelong benefits purchased using defined contribution (DC) plan assets, and social security annuities—should be considered jointly to optimize household lifetime wellbeing. Understanding how these interact is of key importance in order...

Persistent link: https://econbiz.de/10014348756

The Importance of Financial Literacy : Opening a New Field

Lusardi, Annamaria; Mitchell, Olivia S. - 2023

We undertake an assessment of our two decades of research on financial literacy, building on our empirical research and theoretical work casting financial knowledge as a form of investment in human capital. We also draw on recent data to determine who is the most – and least – financially...

Persistent link: https://econbiz.de/10014350975

Understanding Financial Vulnerability Among Asians, Blacks, and Hispanics in the United States

Hasler, Andrea; Lusardi, Annamaria; Mitchell, Olivia S.; … - 2023

The COVID-19 crisis has brought to light the deeply rooted financial struggles that many people face in America, and it also exacerbated racial inequality. In particular, minority communities have been disproportionately impacted by the pandemic in many ways, making them ideal targets for...

Persistent link: https://econbiz.de/10014355047

Early Pension Withdrawals in Chile During the Pandemic

Fuentes, Olga; Mitchell, Olivia S.; Villatoro, Félix - 2023

Chile, with one of the largest and best funded defined contribution programs in Latin America, held over USD $200 bn in assets at the onset of the Covid-19 crisis, or more than 80% of GDP. Reacting to populist pressures during the pandemic, however, the government gave non-retired participants...

Persistent link: https://econbiz.de/10014254772