High School Financial Education and Downstream Financial Behaviors: What Does the Research Say?

Requiring high school financial education affects near-term behaviors for young adults entering financial independence yet has little effect on long-term savings and investing, explain Profs. Carly Urban of Montana State University and Melody Harvey of University of Wisconsin-Madison, via RetireSecure Blog.Read More

What Does Longevity Awareness Do To Retirement Planning?

Understanding life expectancy and longevity risk improves retirement related decision making including how people save, invest, and decumulate assets to avoid running out of money in old age find Profs. Abigail Hurwitz and Orly Sade of The Hebrew University of Jerusalem, and Olivia S. Mitchell of Wharton via RetireSecure blog. 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