financial literacy Archives

Should You Roll Over Your 401(k) When You Retire? Here’s How to Think About It

A clipboard titled "401K Rollovers" with a pair of glasses and a wooden gavel placed on a wooden surface, representing legal and financial concepts.

Who should roll over a 401(k) into an IRA? The answer depends on your level of financial sophistication, explain researchers Olivia S. Mitchell of the Wharton School, Catherine Reilly of CM Reilly Associates, and John A. Turner of the Pension Policy Center, via RetireSecure blog. …Read More

How Behavioral Factors Shape Retirement Wealth

A person writing near stacks of coins and figurines of two elderly individuals. This represents financial planning for retirement.

The 2024 Pension Research Council symposium explored how behavioral factors and financial literacy shape retirement planning, saving, and spending. Read more here.…Read More

CEPAR Partner Investigator Olivia S. Mitchell on reducing longevity risk in retirement

An older couple sitting on a couch, reviewing documents with a tablet. They appear focused and engaged in their work.

In this article, Wharton Professor and CEPAR Partner Investigator Olivia S. Mitchell discusses longevity risks in aging societies and how financial literacy shapes their well-being in later life. Deferred annuities can help protect lifetime income.…Read More

ERISA Advisory Council Explores Annuity Default Options in DC Plans

A person is holding a red umbrella over a pink piggy bank, symbolizing financial protection or saving money.

At an ERISA Advisory Council hearing for the Dept. of Labor, experts recommended including annuities in defined contribution plans to hedge against longevity risk. Olivia S. Mitchell, a Wharton School professor, supported a default annuity structure that begins payments later in life to simplify financial decisions for older participants.…Read More

Secure 2.0 may help student borrowers more with loans than with retirement.

A scale with a graduation cap, book, and diploma on one side balancing with rolled U.S. currency notes on the other, symbolizing education versus monetary value.

New NBER/PRC study shows SECURE 2.0 rule letting firms match student loan payments with retirement contributions boosts loan repayment and builds retirement savings. Wharton Prof. Olivia S. Mitchell predicts the program to be attractive for higher-skilled.…Read More

5 Biggest Regrets of Retirees

A desk scene with laptops, a notebook, a calculator, and documents, illustrating people working on retirement planning, with coffee and eyeglasses nearby.

The top financial regrets of older Americans? Not saving enough, retiring too early, and not buying long-term care insurance. Also, many regret not purchasing annuities and claiming Social Security too early. Insights from Abigail Hurwitz and Olivia S. Mitchell emphasize the importance of proactive financial planning. Read more here. …Read More

When Tested, Most Students Lack Financial Literacy, New Study Finds

A graduate wearing a cap and gown holds a diploma with sunlight filtering through trees in the background, symbolizing achievement and new beginnings.

Only 14.5% of undergraduates surveyed were proficient on a basic financial literacy test, revealing the pressing need for schools to prioritize/enhance financial education! Fortunately, Federal Reserve employees fared better, as reported here.…Read More

Women’s Guide to Building Wealth (2024)

Hands typing on a laptop, with a notebook, pen, and coffee cup nearby, on a pink background. Text reads "Women''s Guide to Building Wealth: Tips to Succeed" by Raina He, MarketWatch.

The gender wage gap, motherhood penalty, and lower credit scores can hinder retirement wealth building, shows Professor Olivia S. Mitchell in recent MarketWatch piece. Despite these obstacles, women can enhance their financial paths.…Read More

A rude awakening: Lack of financial literacy hurts the young. What about older people?

A person with short gray hair and glasses sits on a leather sofa, holding a laptop and gazing thoughtfully into the distance.

Wharton Professor Olivia S. Mitchell reminds us that financial literacy isn’t just for the young – without it, we also face retirement risk. Learn about financial literacy for aging retirees here.…Read More

When you retire, should you keep your money with your employer’s 401(k) plan?

Desk items related to financial planning, including a calculator, glasses, a notebook with "401k" written, post-it notes, a magnifying glass, and a pen on a pink background.

In a recent research study, Prof. Olivia S. Mitchell, John Turner, and Catherine Reilly weigh the pros and cons of remaining in an employer-sponsored 401(k) plan after retirement. The debate continued in Reilly’s November 2023 blog post, picked up in the Star Tribune.…Read More