Tag: dc plans

ows of white piggy bank with one larger red piggy bank

But evidence from state and local workers suggests that doesn’t always happen. The economist’s simple lifecycle model predicts that workers will respond to a one-dollar decrease in their defined benefit savings by increasing their supplemental savings by one dollar.  Whether this prediction holds in practice may turn out to be very important for state and…

Rows of piggy banks of all equal size

Auto enrollment without auto escalation of default contribution rate is part of the problem.     Every year, Vanguard puts out a comprehensive report “How America Saves” that summarizes the statistics for the defined contribution plans that the company administers.  Vanguard tends to administer larger plans, so the plans are better designed than average and…