TY  - JOUR
A1  - Horneff, Vanya
A1  - Maurer, Raimond
A1  - Mitchell, Olivia S.
T1  - Putting the pension back in 401(k) retirement plans: Optimal versus default deferred longevity income annuities
T2  - Journal of Banking & Finance
N2  - The US Treasury recently permitted deferred longevity income annuities to be included in pension plan menus as a default payout solution, yet little research has investigated whether more people should convert some of the $18 trillion they hold in employer-based defined contribution plans into lifelong income streams. We investigate this innovation using a calibrated lifecycle consumption and portfolio choice model embodying realistic institutional considerations. Our welfare analysis shows that defaulting a modest portion of retirees’ 401(k) assets (over a threshold) is an attractive way to enhance retirement security, enhancing welfare by up to 20% of retiree plan accruals.
KW  - Life cycle saving
KW  - Household finance
KW  - Annuity
KW  - Longevity risk
KW  - 401(k) plan
KW  - Retirement
Y1  - 2020
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/77767
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-777675
SN  - 0378-4266
VL  - 114
IS  - 105783
PB  - Elsevier
CY  - Amsterdam
ER  -