Plan Design and Participant Behavior in Defined Contribution Retirement Plans: Past, Present, and Future
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The Wharton School::Wharton Pension Research Council::Wharton Pension Research Council Working Papers
Degree type
Discipline
Economics
Subject
Automatic Enrollment
Target Date Funds
Emergency Savings
Retirement Plan Regulation
Target Date Funds
Emergency Savings
Retirement Plan Regulation
Funder
Grant number
Copyright date
2024
Distributor
Related resources
Author
Reuter, Jonathan
Contributor
Abstract
This chapter reviews the academic literature on defined contribution retirement plan design and participant behavior. While adoption of automatic enrollment has significantly increased participation rates, recent studies find the long-run effects on savings are smaller than the short-run effects, with some savings financed via debt. I also review efforts to expand access to employer-based retirement savings and liquid savings, the pros and cons of target date funds as default investment options, potential conflicts of interest in plan design, and potential benefits of customized defaults. I conclude by discussing how SECURE 2.0 may impact US workers and highlighting topics for future research.
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Date Range for Data Collection (End Date)
Digital Object Identifier
Series name and number
WP2024-16
Publication date
2024-10-03
Volume number
Issue number
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Publisher DOI
Comments
All findings, interpretations, and conclusions of this paper represent the views of the authors and does not represent official views of the above-named institutions. © 2024 Pension Research Council of the Wharton School of the University of Pennsylvania. All rights reserved.