This paper assesses the level of sophistication evident in investment choices of a large sample of individuals drawn from three Australian retirement savings funds. Available US and UK evidence is somewhat mixed on both the measures that should be used when measuring the sophistication as well...

Using a lifecycle model of consumption, saving and portfolio choice combined with linked survey and administrative data on wealth and lifetime earnings we evaluate measures of retirement preparedness. We estimate heterogeneous discount factors for households and compare these estimates of their...

A defined contribution pension plan allows consumption to be redistributed from the plan member's working life to retirement in a manner that is consistent with the member's personal preferences. The plan's optimal funding and investment strategies therefore depend on the desired profile of...

Individual account retirement plans, such as 401(k) plans and individual retirement accounts (IRAs), have grown to be the predominant source of retirement assets for private-sector workers, and are becoming increasingly important for public-sector workers as well. Tracking the percentage of...

This paper explores IRA withdrawal behavior of older Americans using a nationally representative sample. The data for this paper come from the University of Michigan's Health and Retirement Study (HRS), which is sponsored by the National Institute on Aging. The HRS, the most comprehensive...

This paper explores (1) whether plan demographic characteristics would affect individual participant contribution rates and target-date fund investments and (2) equity glide paths for participants in relation to plan demographics by considering target replacement income and its success rate....

Measuring retirement security -- or retirement income adequacy -- is an extremely important topic. The May 2012 EBRI Notes article provided updates for the previously published EBRI Retirement Readiness Ratings™ as well as the average Retirement Savings Shortfalls (RSS). This paper provides...

This paper examines the retirement savings investment choices of Australian workers over a three year period, including the global financial crisis (GFC). The analysis is based on a large sample of 3.6 million members drawn from five superannuation funds with assets of $74 billion. Australian...

Households face earnings risk which is non-normal and varies by age and over the income distribution. We show that allowing for these rich features of earnings dynamics, in the context of a structurally estimated life-cycle portfolio choice model, helps to rationalize the limited participation...