Tag: 401k
Introduction For years, researchers have been puzzled by why so few people purchase fixed, immediate, lifetime annuities for their retirement portfolios. Rational theories have been proposed, but none can fully explain the small size of the actual market. Very recently, academics have turned their attention to possible psychological reasons for the low demand. Interestingly, despit…
Introduction The private pension landscape has changed dramatically over the past quarter century, with a decisive shift away from traditional defined benefit plans toward defined contribution plans, primarily 401(k)s. Under the typical 401(k), individuals are responsible for making their own retirement saving decisions. The first, and most important, decision is whether to participate in t…
