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Their finances are in the green

The brief’s key findings are: While Social Security beneficiaries received no COLA this year, they are still ahead of the game. The reason is that they received a larger-than-usual COLA in 2009, which took effect right after prices dropped due to the economic crisis. But individuals who turned 62 in 2009 are not so lucky…

Senior man calculating finances

Abstract This paper examines the effect of incorporating individual-level heterogeneity into default rules for retirement plan selection. We use data from a large employer that transitioned from a defined benefit (DB) plan to a defined contribution (DC) plan, offering existing employees a choice of plans. Employees who did not make a choice were defaulted to…