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Defaulting 401(k) assets into payout annuities for "pretty good" lifetime incomes

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2026

Some US defined contribution plans offer retirees access to an annuity or lifetime income stream as payout options from their 401(k) accounts. Nevertheless, for behavioral reasons, some retirees may hesitate to elect lifetime income streams as a drawdown vehicle. To counter this, plan sponsors...

Persistent link: https://www.econbiz.de/10015651068

Fixed and variable longevity annuities in defined contribution plans : optimal retirement portfolios taking social security into account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

This paper investigates retirees' optimal purchases of fixed and variable longevity income annuities using their defined contribution (DC) plan assets and given their expected Social Security benefits. As an alternative, we also evaluate using plan assets to boost Social Security benefits...

Persistent link: https://www.econbiz.de/10013554899

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Fixed and Variable Longevity Annuities in Defined Contribution Plans : Optimal Retirement Portfolios Taking Social Security into Account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

Book / Working Paper

Optimal Retirement Portfolios with Fixed and Variable Longevity Annuities in Defined Contribution Plans taking Social Security into Account

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2023

This paper examines how two instruments—annuities with lifelong benefits purchased using defined contribution (DC) plan assets, and social security annuities—should be considered jointly to optimize household lifetime wellbeing. Understanding how these interact is of key importance in order...

Persistent link: https://www.econbiz.de/10014348756

Testing methods to enhance longevity awareness

Mitchell, Olivia S.; Sade, Orly; Hurwitz, Abigail - 2022

Many people do not understand the concepts of life expectancy and longevity risk, potentially leading them to under-save for retirement or to not purchase longevity insurance, which in turn could reduce wellbeing at older ages. We investigate alternative ways to increase the salience of both...

Persistent link: https://www.econbiz.de/10013470540

Do Required Minimum Distribution 401(k) Rules Matter, and For Whom? Insights from a Lifecycle Model

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2021

Tax-qualified vehicles helped U.S. private-sector workers accumulate $25Tr in retirement assets. An often-overlooked important institutional feature shaping decumulations from these retirement plans is the "Required Minimum Distribution" (RMD) regulation, requiring retirees to withdraw a minimum...

Persistent link: https://www.econbiz.de/10012482705

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Do Required Minimum Distribution 401(K) Rules Matter, and for Whom? Insights from a Lifecycle Model

Horneff, Vanya; Maurer, Raimond; Mitchell, Olivia S. - 2021

Book / Working Paper

Understanding Individual Account Guarantees

Lachance, Marie-Eve; Mitchell, Olivia S. - 2021

Demographic aging renders workers vulnerable to the inherent uncertainty of unfunded social security systems. This realization has set off a global wave of social security reforms, and numerous countries have now set up Individual Accounts (IA) plans in response. Strengths of IAs are that...

Persistent link: https://www.econbiz.de/10013246978

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Understanding Individual Account Guarantees

Lachance, Marie-Eve - 2002

Book / Working Paper

Longevity Perceptions and Saving Decisions during the COVID-19 Outbreak : An Experimental Investigation

Hurwitz, Abigail; Mitchell, Olivia S.; Sade, Orly - 2021

We experimentally study individuals' perceptions about and advice to others regarding retirement savings and annuitization during the pandemic. Many people recommend that others save more for retirement, but those most affected by the pandemic tell others to save and annuitize less. We...

Persistent link: https://www.econbiz.de/10012482579

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Longevity perceptions and saving decisions during the COVID-19 outbreak : an experimental investigation

Hurwitz, Abigail; Mitchell, Olivia S.; Sade, Orly - 2021

Book / Working Paper

Longevity Perceptions and Saving Decisions During the Covid-19 Outbreak : An Experimental Investigation

Hurwitz, Abigail; Mitchell, Olivia S.; Sade, Orly - 2021

Book / Working Paper

Longevity Perceptions and Saving Decisions During the COVID-19 Outbreak : An Experimental Investigation

Hurwitz, Abigail; Mitchell, Olivia S.; Sade, Orly - 2021

Book / Working Paper

The Chilean Pension Reform Turns 25 : Lessons from the Social Protection Survey

Arenas, Alberto; Bravo, David; Behrman, Jere R.; … - 2021

In 1980, Chile dramatically reformed its retirement system, replacing what was an old insolvent PAYGO program with a new structure that relies heavily on funded defined contribution individual accounts. In addition, eligibility and benefit requirements were standardized, and a safety net for...

Persistent link: https://www.econbiz.de/10013227060

Target date funds and portfolio choice in 401(k) plans

Mitchell, Olivia S.; Utkus, Stephen P. - 2021

Target date funds in corporate retirement plans grew from $5B in 2000 to $734B in 2018, partly because federal regulation sanctioned these as default investments in automatic enrollment plans. We show that adopters delegated pension investment decisions to fund managers selected by plan...

Persistent link: https://www.econbiz.de/10012665505

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Target date funds and portfolio choice in 401(k) plans

Mitchell, Olivia S.; Utkus, Stephen P. - 2020

Book / Working Paper

Target Date Funds and Portfolio Choice in 401(K) Plans

Mitchell, Olivia S.; Utkus, Stephen P. - 2021

Book / Working Paper

Target Date Funds and Portfolio Choice in 401(k) Plans

Mitchell, Olivia S. - 2020

Book / Working Paper

Target Date Funds and Portfolio Choice in 401(k) Plans

Mitchell, Olivia S. - 2020

Book / Working Paper

The Role of Real Annuities and Indexed Bonds in an Individual Accounts Retirement Program

Brown, Jeffrey R.; Mitchell, Olivia S.; Poterba, James M. - 2021

We explore four issues concerning annuitization options that retirees might use in the decumulation phase of an individual accounts' retirement saving system. First, we investigate the operation of both real and nominal annuity individual annuity markets in the United Kingdom. The widespread...

Persistent link: https://www.econbiz.de/10013215351

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The Role of Real Annuities and Indexed Bonds in an Individual Accounts Retirement Program

Brown, Jeffrey R. - 1999

Book / Working Paper