Public sector defined benefit pension plans are based on final earnings. As such, these plans are back-loaded; those with long careers receive substantial benefits and those who leave early receive little. The analysis consists of three parts. The first section discusses the design of state and...

Social Security privatization, in any form, will only highlight the problems that individuals face when left on their own to make saving and investment decisions. The 401(k) experience is a case in point. Making everyone a money manager is not the way to improve retirement income security for an...

Public sector defined benefit pension plans are based on final earnings. As such, these plans are back-loaded; those with long careers receive substantial benefits and those who leave early receive little. The analysis consists of three parts. The first section discusses the design of state and...

Although annuities confer the benefits of lifetime income, the market for them is minuscule. Explanations include annuities’ high cost, reluctance to part with accumulated assets, and underappreciation for insuring against outliving one’s resources. Employers could increase the availability...

This paper examines the relationship between age-related cognitive decline and three potential workplace outcomes: 1) coping with increased job difficulty; 2) shifting to a less cognitively demanding job; and 3) retiring early. It uses data from the Health and Retirement Study (HRS) and the O*NET...

While dramatic increases in women’s labor supply and earnings have led to a substantial decline in the fraction of women eligible for spouse benefits at retirement, most wives still receive a survivor benefit, as wives still typically have lower earnings than their husbands and live longer....