This paper examines how workers use 401(k) plans by examining their participation, contribution, and withdrawal decisions. Sixty-five percent of eligible workers participate in 401(k) plans. Employee participation rises with income, age, job tenure, and education. While participation also rises...

Selecting the best age to begin social security benefits is an important election for lower-income individuals. These individuals are especially vulnerable to the timing and magnitude of critical cash flow. Unfortunately, the decision models and measures being used by individuals to analyze...

Firms' matching contributions to employees' defined contribution pension plans are an important spur to employee retirement savings. Firms frequently match employees' defined contribution pension plan using company stock and prohibit employees from selling; employees sometimes voluntarily invest...

Today's retirees face the daunting task of determining appropriate investment and spending strategies for their accumulated savings. Financial economists have addressed their problem using an expected utility framework. In contrast, many financial advisors rely instead on rules of thumb. We show...

This paper presents a theoretical foundation and empirical evidence in favor of the view that the tax on continued activity not only decreases the participation rate by inducing early retirement, but also badly affects the employment rate of older workers just before early retirement age....

Contribution rates and asset allocation choices of participants in individual retirement saving accounts have important implications for the adequacy of retirement income. This paper presents econometric evidence on the role that participant investment choice plays in three critical aspects of...

This paper summarizes scientific thought on the likelihood of Climate Change and explores potential implications for retirement planning. The thoughts of several authors are combined to place Climate Change risk within the context of Black Swans and Deep Risk and describe implications for...

The Asset Location (AL) decision determines which of the assets owned should be held in which account-type (tax-deferred, tax-exempt or taxable) in order to maximize the tax-reduction benefits of those accounts and to maximize ending wealth. This paper argues against AL practices that a) phrase...

The paper traces labor market reforms over the last four decades. It provides estimates of retirement incentives for a selected set of typical worker profiles across time and socio-economic groups and links these series to the labor market performance in Belgium. The results show that the...

Canada' Registered Retirement Savings Plan (RRSP) is a tax-deferred account intended to help workers save for retirement. It has existed for so many decades that professionals feel certain they know everything there is to know about the account. Its rules and mechanics are well known not only by...