retirement Archives

SECURE Act, signed by President, a game-changer for retirement plans

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The new SECURE Act will boost retirement security, including raising the required minimum distribution age to 72 and encouraging 401(k) plans to include deferred annuities as payout options, explains Wharton Prof. Olivia S. Mitchell to Erin Arvedlund of the Philadelphia Inquirer.…Read More

Congress Just Passed the Biggest Retirement Bill in More Than a Decade. Here’s What You Need to Know

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Congress finally passed the long-awaited SECURE Act: deferred lifetime income annuities can now be included in 401(k) plans to enhance improve retirement security, explains Prof. Olivia S. Mitchell of Wharton to Elizabeth O’Brien at Money.…Read More

Economists say a recession is coming: How can 401(k) investors prepare?

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Borrowing against your retirement savings can be tempting but counterproductive in a recession, says Nick Strain at MarketWatch, citing “Borrowing from the Future: 401(k) Plan Loans and Loan Defaults,” the Pension Research Council study by Timothy Jun Lu, Olivia S. Mitchell, Stephen P. Utkus and Jean A. Young.…Read More

The Short Life and Untimely Death of the MyRA

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A plan to fill the gaps in American’s pension system was kiboshed fewer than 18 months after launch. “The Short Life and Untimely Death of the MyRA” by Mark Iwry explains the proposal, its abrupt end, and where things might go next.…Read More

Would you take a money-back guarantee from a 401(k)? (The answer should be no)

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Are money-back guaranteed retirement accounts a good deal? Not now, explains Wharton’s Olivia S. Mitchell to MarketWatch here, citing her recent study with Vanya Horneff, Daniel Liebler, and Raimond Maurer (posted here).

401(k) Early Withdrawals Will Be Easier: Be Careful!

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Economic hardship 401(k) withdrawals to get easier from January 2020, which Wharton’s Olivia S. Mitchell thinks will boost popularity of 401(k) withdrawals over loans and help people avoid penalties from defaulting on those loans. Read here.

Retirement Savings as a Political Cudgel in the Debate over FTTs

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A financial transaction tax (FTT) is exactly what it sounds like: a tax imposed on the exchange of all or certain types of financial instruments. A well-known example of such a tax is the British stamp tax—a modern version of the tax that contributed to the American independence movement. Recently, several prominent presidential candidates, including Bernie Sanders, Elizabeth Warren, and Kamala Harris, have called for such a tax……Read More

Wharton’s Prof. Olivia S. Mitchell Among Recipients of $2 Million ICMM Grant

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The Institute of Consumer Money Management recently announced a $2 million grant for studying the financial health of low and moderate income Americans near or in retirement. Prof. Mitchell, Dr. Robert Clark of North Carolina State University, and Dr. Annamaria Lusardi of George Washington University will be working together on…Read More