retirement

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

A small group of people sit around a table in a library, discussing or studying. They have a laptop, books, and papers on the table. Shelves of books are visible in the background.

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

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

A small nest containing three eggs labeled "ROTH," "IRA," and "401k," placed on top of a simplified employee pension document, symbolizing retirement savings options.

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

A person with a concerned expression reviews documents at a table, surrounded by papers, a tablet, a pen, and a coffee mug.

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