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Although households have invested billions in 401(k) accounts, these balances may not be new saving if workers invest money that they would have saved in the program's absence. In this paper, I assess the effect of the 401(k) program on saving by comparing changes in the wealth of 401(k)...
Persistent link: https://www.econbiz.de/10005721128
benefit pensions, life insurance, annuities, welfare payments, and future labor earnings. Abstracting from the uncertainty … annuitized value of comprehensive wealth and the ratio of comprehensive wealth to the actuarial present value of future poverty … poverty-line wealth of 3.56. About 12 percent of households, however, do not have sufficient wealth to finance consumption …
Persistent link: https://www.econbiz.de/10005721144
During the 1990s, the asset portfolios of defined-benefit (DB) pension plans ballooned with the booming stock market. Due to current accounting guidelines, the robust growth in pension assets resulted in a stealthy but substantial boost to the profits of sponsoring corporations. This study...
Persistent link: https://www.econbiz.de/10005393814
Many firms that sponsor traditional defined benefit pensions have converted their plans to cash balance plans in the …
Persistent link: https://www.econbiz.de/10005393957
, the SCF data show that including pensions and Social Security in net worth makes the distribution more even. The analysis …
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Some retirement plans allow the participant to choose how funds are invested. Having to direct investments may provide the participant with financial education. This paper finds that households covered by pension plans in which the employee chooses investments are significantly more apt to hold...
Persistent link: https://www.econbiz.de/10005513080
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Because employer-provided pensions represent an important source of income during retirement, accurate information on …
Persistent link: https://www.econbiz.de/10005514168