The Good Old Days: Was the Pension Era Really as Good as Its Reputation?

Defined benefit pensions often paid lifetime income streams, but many workers were not included; some companies also underfunded the plans. Defined contribution plans plus Social Security offer more Americans retirement security, explains Wharton Prof. Olivia S. Mitchell, via PlanAdvisor. Read More

How would 401(k) ‘Rothification’ alter saving, retirement security, and inequality?

Taxing 401(k) contributions versus payouts will alter saving, investment, consumption, & Social Security claiming. But there’s little rationale for policymakers to favor taxing pension contributions versus pension payouts, on egalitarian or revenue-enhancing grounds. Research by Vanya Horneff and Raimond Maurer of Goethe-Universität Frankfurt, and Olivia S. Mitchell of The Wharton School via Journal of Pension Economics & Finance.Read More

Many 401(k) Participants Have No Idea How Cash Will Come Out

Retirement plan type, income level, and age all impact pension withdrawal choices for participants who terminate employment with company pensions, explain Profs. Olivia S. Mitchell of The Wharton School and Robert L. Clark of NC State Poole College of Management via ThinkAdvisor.  Also participants with higher Financial Literacy levels are more likely to choose annuitized benefits. Download @PensionResearch working paper here.Read More