TY  - UNPD
A1  - Horneff, Vanya
A1  - Maurer, Raimond
A1  - Mitchell, Olivia S.
T1  - Putting the pension back in 401(k) retirement plans : optimal versus default longevity income annuities
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 607
N2  - A recent US Treasury regulation allowed 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 $15 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 small 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.
T3  - CFS working paper series - 607 
KW  - life cycle saving
KW  - household finance
KW  - annuity
KW  - longevity risk
KW  - 401(k) plan
KW  - retirement
Y1  - 2018
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/47969
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-479692
UR  - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3289916
IS  - September 9, 2018
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -