management choices . One is the possibility that some individuals will invest
conservatively , thereby earning low rates of return on their account balances and
thus not accumulating sufficient resources to finance retirement consumption .
Author: James M. Poterba
Category: 401(k) plans
Proposals for mandatory private saving accounts differ in the degree of investment discretion that they provide to individual savers, and in their provisions for annuitization of accumulated assets. With respect to investment choices, some argue that individuals must be prevented from investing too conservatively, and earning low returns over their accumulation period, while others argue that individuals should be protected from recklessly investing their retirement assets. With respect to annuitization, there is concern that individuals might not choose annuities and would thereby expose themselves to a risk of outliving their assets in a privatized system. This paper draws on the existing experience with 401(k) plans and other defined contribution pension plans to provide evidence on each of these issues. We find that the share of 401(k) plan assets held in corporate equities has increased substantially in recent years. We are only able to provide limited evidence on participant asset management, since many 401(k) plans have limited options in this regard. We do find, however, that a participant's education and income levels are related to asset allocation decisions, with less educated and lower income participants less inclined to invest in equity securities. We also analyze a unique data base on TIAA-CREF participants and find several attributes of annuitization behavior that seem inconsistent with standard behavior in the lifecycle model.
D. How SHOULD THE Cost of PRovidING FoR RETIREMENT INCOME BE
SHARED? Except for benefits earned under annuity contracts purchased by
employees and/or employers, retirement benefits are, in large part,
Over the past few decades , an increasing proportion of individuals claim to have retired voluntarily ( that is , because they wanted to , not , as in the past ... Some
research has used discrete choice models to capture the retirement decision .
Author: Robin L. Lumsdaine
Category: Labor supply
Recent policy has focused on alleviating poverty among the elderly, with varying degrees of success. Gains to some subsets of the elderly population have come at the expense of others. A component of the policy debate has been identifying factors which might influence labor force participation decisions and the effects such decisions will have on retirement income and its adequacy for a growing elderly population. While models of retirement behavior are becoming increasingly sophisticated, most fail to capture key elements such as expectations and uncertainty. This is in part due to the reduced form nature of policy experiments; parameters are estimated under a current policy and used to predict effects of an alternative scenario. Such an approach implicitly assumes that the only difference in the alternative setting is the change in policy and does not adequately account for endogeneity of decisions and responses to these changes. This paper reviews factors affecting the labor supply decision, their interactions with and implications for subsequent retirement income, and identifies important methods and data requirements necessary to model complicated dynamic behavior more accurately
Author: National Council on the AgingPublish On: 1976
CHOOSING RETIREMENT HOUSING Retirement housing - public , profit or
nonprofit - can offer you some of the best possible choices in living arrangements
. Regular dwelling units , they are specially designed and adapted for - and cater
Forget the antecdotes and generalizations offered up by most books on this topic and use this guide to get a realistic understanding of how market volatility and inflation can dash your retirement plans.
Author: Michael Corbett
Publisher: Stoney Island Publishing, LLC
Category: Finance, Personal
Forget the antecdotes and generalizations offered up by most books on this topic and use this guide to get a realistic understanding of how market volatility and inflation can dash your retirement plans. This book sets aside the corny jokes and glib pros in favor of telling you exactly what you need to know in order to retire successfully. Broken down into easily digestible pieces and supported by free online video and interactive software, this volume will allow you to build the foundational knowledge needed to understand the risks you face in retirement and how to begin dealing with them. This volume contains 5 graphs, 13 screenshots and 11 charts. In addition there is a short question and answer section at the end of each chapter (19 chapters), and a 10 page index. The additional online content that can be accessed for free at www.myretirementlibrary.com includes three training videos that run approximately 10 minutes each and interactive software that is used and explained throughout the book. Offered by MyRetirement Library. Find out more at www.MyRetirementLibrary.com
Author: Democratic Policy Commission (U.S.)Publish On: 1986
Democrats favor a pension policy to prevent workers from losing their pension
rights and benefits because they change ... PORTABLE PENSIONS :
FOSTERING CAREER CHOICES AND RETIREMENT SECURITY Bob was just
I am looking forward to retiring . 2. My financial status is not adequate to retire . 3.
I am aware of how money can work for me after I retire . 300 ]コロロ Your
attitudes and values dictate your decisions . Everyone needs to know why and
Category: Civil service
Second in a series of three retirement workshops sponsored by the State Retirement Systems (which consists of the State Employees' Retirement System of Illinois, the Judges' Retirement System of Illinois, and the General Assembly Retirement System), this handbook focuses on retirement planning efforts, including finances, Social Security, health & leisure, and housing.
Charter Choices Where Reasonable Differences The compassion and rational
analysis which characterizes both sides of the mandatory retirement issue are
well captured in the masterful judgments of Mr. Justice La Forest for the majority
Author: George W. Adams
Publisher: Kingston, Ont. : Industrial Relations Centre, Queen's University
tioice^ u Making a Good Move to a Retirement Community More and more older
adults are seeking alternatives to their present living arrangements. Retirement
communities and assisted living complexes are options that offer the privacy and
Thus , not working by choice — retirement became a new option . And pension
programs providing compensation based on years of service rather than need
were instrumental in defining this retirement status option as appropriate and ...
THE CHANGE PROCESS Ideally , the individual should have a variety of choices
for living the rest of his life after retirement , depending on his interest , resources
and skills ; he should also begin early for lifetime planning to include his final ...
Thus although investment choices make a difference, the overwhelming
determinant of the accumulation of wealth at retirement is simply the choice to
save. As a benchmark, we also considered the assets that the HRS respondents
Author: Steven F. Venti
Category: Mother and child
People earn just enough to get by' is a phrase often used to explain the low personal saving rate in the United States. The implicit presumption is that households simply do not earn enough to pay for current needs' and to save. We show in this paper that at all levels of lifetime earnings there is an enormous dispersion in the accumulated wealth of families approaching retirement. It is not only households with low incomes that save little; a significant proportion of high income households also saves little. And, a substantial proportion of low income households save a great deal. We then consider the extent to which differences in household lifetime financial resources explain the wide dispersion in wealth, given lifetime earnings. We find that very little of this dispersion can be explained by chance differences in individual circumstances largely outside the control of individuals' that might limit the resources from which saving might plausibly be made. We also consider how much of the dispersion in wealth might be accounted for by different investment choices of savers some more risky, some less risky given lifetime earnings. We find that investment choice is not a major determinant of the dispersion in asset accumulation. It matters about as much as chance events that limit the available resources of households with the same lifetime earnings. We conclude that the bulk of the dispersion must be attributed to differences to in the amount that households choose to save. The differences in saving choices among households with similar lifetime earnings lead to vastly different levels of asset accumulation by the time retirement age approaches.
A Survey on Personal Pensions in Comparison with Other Pension Options
Teresa Williams, Julia Field. 7 . 5 Perceived advantages and disadvantages of
the three pension types All respondents were presented with a list of possible ...
Author: Teresa Williams
Category: Old age pensions
The attitudes, motivations and choices relating to personal pension plans of people who were still some way from retirement were investigated in this survey. A sample was selected of those aged 16-44 registered in each of three different pension arrangements: the State Earnings Related Pension Scheme (SERPS), employer schemes, and Personal Pension Plans (PPPs). The findings set out the perceived advantages and disadvantages of each scheme type.
The resulting retirement income experience of members of the cohort is
compared for a range of decisions . ... However , it is expected that individuals
with widely differing earnings histories would make diverse choices at the time of retirement ...
Author: John Creedy
Publisher: Edward Elgar Pub
Category: Business & Economics
Population ageing is an important trend that will be experienced in industrialised countries in the early part of the next century. This work examines aspects of population ageing and pensions, with an emphasis on the design and use of simple economic models.
If we are to encourage national savings , we must encourage education to
empower each American to make the most of his or her investment choices . Retirement planning services provided by employers to their employees must be
pub gift a15100 Participation and Investment Decisions in a Retirement Plan :
The Influence of Colleagues ' Choices Esther Duflo and Emmanuel Saez NBER
Working Paper No . 7735 June 2000 JEL No . D83 , 122 ABSTRACT This paper ...
Author: Esther Duflo
Category: Age groups
This paper investigates whether peer effects play an important role in retirement savings decisions. We use individual data from the staff of a university to study whether individual decisions to enroll in a Tax Deferred Account plan sponsored by the university (and the choice of the mutual fund vendor for people who choose to enroll) are affected by the decisions of other employees in the same department. To overcome the identification problems, we separate the departments into sub-groups (along gender, status, age, and tenure lines) and we instrument the average participation of each peer group by the salary or tenure structure in this group. Our results suggest that peer effects are important. We find significant own-group peer effect on participation and on vendor's choice, but no cross-group peer effects.
The informed Choice strategy is part of the Department for Work and Pension ' s
wider pension reform programme and aims to empower individuals to make their
own decisions about retirement and the level of income they want in retirement .
A Helpful Planning Guide for the Retirement Task You Must Do for Yourself Elmer
Otte. NO YES • I already have ... REHEARSE ! Now , go find out - in person - how
you like the area you ' ve selected as first choice retirement location .
Author: Donald S. Gudhus, Carol J. VenturaPublish On: 2013-07-23
The best way to do this is by saving money in individual plans, such as 401(k)s, 403(b)s, and IRAs. The overall economy isnt the only thing thats changed.
Author: Donald S. Gudhus, Carol J. Ventura
Category: Business & Economics
Retirement used to be funded by defined benefit plans, pensions, and Social Security, but that’s not always the case anymore. With the economy shifting and Social Security funding marked by uncertainty, it has become important for individuals to fund their own retirement accounts. The best way to do this is by saving money in individual plans, such as 401(k)s, 403(b)s, and IRAs. The overall economy isn’t the only thing that’s changed. Many women are now the primary financial decision makers in their households—even though historically women have been underserved by the financial community. This guidebook seeks to help you • make financial decisions that will promote financial security for yourself and your family; • compare investment choices and pick the ones that are best for you; • manage the tax implications of withdrawals; and • pursue strategies that improve your chances of maximizing returns. The cost of retirement continues to go up, along with health-care costs and prices for necessities like food and gasoline. It’s time to take responsibility for your retirement; you can start today with Women & Retirement Planning.
Retirement Options Primer are , Retirement housing is not for everyone . After
spending more than a year critically reviewing nearly 250 independent assisted
living facilities in Washington State , I gathered information crucial to share with ...
Author: Jeannette Franks
A bewildering array of choices confronts anyone looking for the right retirement community. With buzzwords like continuing care, independent living, and skilled care, how can anyone assess all the different levels of service? Now, for the first time, here is guidance for anyone in Washington State faced with finding retirement housing. Gerontologist Jeannette Franks has evaluated 200 retirement communities and assisted living centers across the state to provide retirees with the power of information when they go about making this all-important decision.