The Role of 401(k) Accumulations in Future Retirement Income
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Wharton Pension Research Council Working Papers
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Economics
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Holden, Sarah
VanDerhei, Jack
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Defined contribution (DC) plans are increasingly being offered as the primary employer-sponsored pension, so it is of interest to ask whether DC accumulations are likely to yield sufficient income in retirement. This chapter uses the EBRI/ICI 401(k) Accumulation Projection Model to explore alternative future scenarios for retirees having had 401(k) plans available over a full working career. We assess the impact of catch-up contributions recently permitted by legislation; saving through individual retirement accounts if the employer does not offer a 401(k) plan; and changing the retirement age.
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2005-01-01
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The published version of this Working Paper may be found in the 2006 publication: Restructuring Retirement Risks (https://pensionresearchcouncil.wharton.upenn.edu/publications/books/restructuring-retirement-risks/)