We develop a measure of hybrid defined benefit DB pension risk and show how this pension risk affects individual portfolio decisions. We find that people in riskier DB plans are, on average, not only less likely to hold equity but also hold a smaller share of their wealth in equity. This...

Using representative household panel data, we show that the investment behavior ofhouseholds is related to the economic locus of control of household heads. A households internal locus of control in economic issues is positively related to its decision to hold risky assets as well as its share...