Keywords

default effects, retirement savings, savings outcomes

Abstract

This paper summarizes the empirical evidence on how defaults impact retirement savings outcomes. After outlining the salient features of the various sources of retirement income in the U.S., the paper presents the empirical evidence on how defaults impact retirement savings outcomes at all stages of the savings lifecycle, including savings plan participation, savings rates, asset allocation, and post-retirement savings distributions. The paper then discusses why defaults have such a tremendous impact on savings outcomes. The paper concludes with a discussion of the role of public policy towards retirement saving when defaults matter.

Original Publication Citation

“The Importance of Default Options for Retirement Savings Outcomes: Evidence from the United States.” 2008. In Stephen J. Kay and Tapen Sinha, editors, Lessons from Pension Reform in the Americas, New York: Oxford University Press, pp. 59-87 (with John Beshears, James J. Choi and David Laibson). http://www.pensionresearchcouncil.org/publications/document.php?file=824

Document Type

Peer-Reviewed Article

Publication Date

2008

Publisher

Oxford University Press

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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