Investment Choice and Savings in Defined Contribution Pensions

TitleInvestment Choice and Savings in Defined Contribution Pensions
Publication TypeJournal Article
Year of Publication2012
AuthorsLi, Z
JournalPensions: An International Journal
KeywordsConsumption and Savings, Event History/Life Cycle, Net Worth and Assets, Retirement Planning and Satisfaction

This article presents econometric evidence from Health and Retirement Study on the role that investment choice plays in the participants' saving levels in the defined contribution (DC) pensions. I distinguish the effect of unconstrained investment choice from the one constrained in company stocks. My preferred estimates indicate that participants with investment choice contribute over three percentage points more of their salary into the DC plan than people without choice, and people constrained in company stocks contribute about three percentage points less in their retirement saving account.


Journal Article

URLURL: Publisher's URL
Endnote Keywords

Intertemporal Consumer Choice/Life Cycle Models and Saving/Investment/Retirement/Retirement Policies/retirement Saving

Endnote ID


Citation Key7707