Search

We consider the retirement planning question that a single taxpayer or couple faces when determining an amount to save for retirement and the type of retirement account in which to [...]

Buying a retirement saving plan in Israel involves meeting with an agent whose interests may differ from those of his or her customers. The aim of the present study was [...]

Early withdrawals from retirement accounts are a double-edged sword, because withdrawals reduce retirement resources, but they also allow individuals to smooth consumption when they experience demographic and economic shocks. Using [...]

The provision of health insurance has previously been shown to be an important determinant of retirement timing among older Americans, but the existing literature has largely ignored some aspects of [...]

Consistent with the global trend to shift responsibility for retirement income provision from the public purse to individuals has been encouragement to save more and to manage investment strategy. Analyzing data from 2,300 respondents to a randomly distributed questionnaire, this article focuses on the motivational importance of social norms. The study finds injunctive social norms (what is commonly approved or disapproved of) exert greater influence than descriptive social norms (what is commonly done) in predicting retirement savings intentions. Modeling employs the theory of planned behavior, and also finds injunctive social norm has predictive primacy over attitude and perceived behavioral control. Discussion advocates a balanced approach to intervention design, and identifies opportunities for the further study of normative message framing. doi: 10.2190/AG.71.4.a

CASE DESCRIPTION The retirement of Professor Paul is a case that I have utilized in my FINA 464--Retirement Planning course with a lot of success for the last two years. It is a case that is geared for junior and senior level finance students, although it could be used in any course that teaches financial analysis using Excel. CASE SYNOPSIS This case deals with the retirement plans of Professor Paul. Professor Paul is a composite of many of my faculty colleagues who I have encountered during my teaching career. He has been diligently planning for his retirement and believes that he that he has amassed sufficient assets to enable him to retire early and comfortably. An analysis of his situation using a retirement income planning model that I have developed indicates that he is very wrong!, INSTRUCTORS' NOTES Objectives of the case Upon completing this case, students will be able to: 1. Utilize and understand a comprehensive retirement income planning model 2. Have a comprehensive introduction [...]

This paper uses administrative data from millions of 401(k) participants dating back to 1996 as well as several simulation models to determine 401(k) plans' susceptibility to several alleged limitations as well as its potential for significant retirement wealth accumulation for employees working for employers who have chosen to sponsor these plans. What will happen to 401(k) participants after the 2008 market decline will be largely determined by the extent to which the features of automatic enrollment, automatic escalation of contributions, and automatic investment are allowed to play out. Simulation results suggest that the first two features will significantly improve retirement wealth for the lowest-income quartiles going forward, and the third feature (primarily target-date funds) suggest that a large percentage of those on the verge of retirement would benefit significantly by a reduction of equity concentrations to a more age-appropriate level. KEYWORDS 401(k) plans, retirement income adequacy, asset allocation, employment-based benefits, life-cycle funds, pension plan assets, retirement plans, self-directed investments, target-date funds DOI: 10.1080/08959421003620871

Financial literacy in the general Australian population and how to improve it is now firmly on the national agenda, partly as a result of compulsory superannuation. This paper reports the results of a pilot study which explored the financial literacy levels and superannuation knowledge of Indigenous Australians living in an urban environment. Previous studies have indicated that social disadvantage has a strong correlation with poor financial literacy but previous surveys of financial literacy in Australia have not reported specifically on the Indigenous population. Findings suggest that in some areas financial literacy is significantly weaker than that in the general population. Several of the areas of comparative weakness relate to an over belief in the role of government and the extent to which financial matters are regulated. There is also a high level of desire for financial education and information but a lower level of usage of potential sources of financial information. The findings suggest that a closing of the financial literacy gap is required. Keywords: Financial Literacy, Retirement Savings, Indigenous Australians, Introduction The financial exclusion of Indigenous Australians has been identified as a product of a lack of physical access to financial services and low levels of financial literacy (McDonnell 2003). [...]

Despite large public policy efforts over the past 30 years, a large minority of households remains consistently inadequately prepared for retirement. If policymakers want to address this shortcoming, public policy has to change from its current path. This paper suggests a system of mandatory private pensions funded by a minimum mandatory contribution of 3% of payroll. In addition, a number of institutional changes are suggested to reduce the costs and risks of individual accounts, doi: 10.1300/J031v19n01_02 KEYWORDS. Retirement income adequacy, private pensions, pension reform

The methods to improve tax benefits of retirement accounts with relation to behavior of risk-averse investors are presented.

Abstract We offer a streamlined life-cycle model that provides support for the common advice given to investors to hold large initial equity allocations among financial assets and then reduce them [...]

Research is presented concerning the difficulties which occur when the private annuity market is affected by market failure as a result of adverse selection. Government-run voluntary or compulsory life-annuity plans are discussed.

Pension reform in Western societies has sought to shift the balance of provision towards the private sector. In Britain, the 1986 Social Security Act marked a watershed in privatisation by promoting personal pensions while cutting the value of the State Earnings Related Pension Scheme. The article assesses the effects of the Act, especially the different implications according to gender and position in the labour market. Data from the 1993/4 and 1994/5 General Household Surveys is used to examine the changing pension arrangements of employees. We distinguish between personal pension membership among those who rejected the opportunity to belong to an occupational pension and those for whom this option was not available. The extent to which personal pensions were taken up by the intended target group or by those unlikely to benefit is assessed. Rejecting membership of an occupational pension scheme was associated with labour market disadvantage but those who opted for a personal pension were more advantaged than those who remained in SERPS. Among those lacking access to an occupational pension scheme, take-up was higher among younger and more advantaged employees. However, a substantial proportion of personal pension contributors were low paid, especially among women employed part time, illustrating the extent of mis-selling of personal pensions to those who are likely to have been better off in SERPS.

The elderly in the bottom 40% of income distribution have received slight increase in retirement income from pensions other than Social Security since the mid-1970s. Those in upper income ranges have experienced steady income gains from private sources in the same period.

For 1999's National Health Line articles, Sharon Keigher has adopted the theme of the United Nations International Year of Older Persons, 'Towards a Society for All Ages' The UN, as [...]

These authors make a variety of points around a single theme: Privatization would be dangerous. From threatening the welfare of elderly who don't save enough to ruining the savings of people who retire amid a stock-market crash, private accounts can't make up for a public program of income guarantees., Social Security has been a huge success. It provides benefits to 44 million Americans who are elderly, disabled, or survivors of deceased workers. More than three-fifths of the elderly derive [...]