@article {5866, title = {The Transition from Defined Benefit to Defined Contribution Pensions: Does It Influence Elderly Poverty?}, year = {2015}, institution = {Boston College}, abstract = {The transition from defined benefit (DB) to defined contribution (DC) pension plans has left workers forced to make choices that may decrease their financial resources in retirement: taking lump-sum distributions before retirement that divert funds that could support consumption in retirement, not annuitizing DC benefits, or choosing a single-life annuity over a joint-and-survivor option so that their surviving spouses are left susceptible to income loss. This study examines pension coverage, lump-sum distributions, annuitization, and annuity life options among Health and Retirement Study households observed at ages 65-69 and 75-79 and relates these pension provisions to poverty incidence and the risk of falling into poverty at older ages. The results indicate that households with pensions that are annuitized with the joint-and-survivor life option and that do not take lump-sum distributions before age 55 are best able to avoid income and asset poverty. The results emphasize the importance of making DC plans operate more like DB plans, because the opportunities for these poor financial choices are likely only to grow given the reliance on DC plans as the sole source of employer pension income for future cohorts of retirees.}, keywords = {Net Worth and Assets, Pensions, Retirement Planning and Satisfaction}, author = {Orlova, Natalia S. and Matthew S. Rutledge and April Yanyuan Wu} } @article {8209, title = {Why Don{\textquoteright}t Lower-Income Individuals Have Retirement Saving Plans?}, journal = {Communities and Banking}, volume = {16}, year = {2015}, pages = {16-19}, publisher = {16}, abstract = {Lower-income individuals lower employment rate and the smaller probability of their working for an employer that offers pensions underlie the pension gap between higher- and lower-income groups.}, keywords = {Income, Pensions}, author = {April Yanyuan Wu and Matthew S. Rutledge and Penglase, Jacob} } @article {5868, title = {Will the Average Retirement Age Continue to Increase?}, year = {2015}, institution = {Boston, MA, Center for Retirement Research at Boston College}, abstract = {Using Health and Retirement Study (HRS) data, this paper examines how changes in individual workers past and present pension coverage, retirement incentives in Social Security, and retiree health insurance have contributed to retirement decisions for the 1931-1953 birth cohorts. It then uses these findings to project retirement behavior for the 1955-1987 cohorts in the Survey of Income and Program Participation (SIPP). A key assumption is that younger cohorts will have no defined benefit (DB) pensions or retiree health coverage in their future jobs. A key limitation is the assumption of a stable relationship in each successive cohort between each factor and labor market decisions.}, keywords = {Employment and Labor Force, Pensions, Retirement Planning and Satisfaction, Social Security}, author = {Matthew S. Rutledge and Gillis, Christopher M. and Anthony Webb} } @article {5977, title = {Wages, Pensions, and Public-Private Sector Compensation Differentials for Older Workers}, number = {19454}, year = {2013}, institution = {National Institute of Economic Research}, address = {Cambridge, MA}, abstract = {We use a sample of full-time workers over 50 years of age from the 2004 and 2006 waves of the Health and Retirement Study to investigate whether workers in federal, state, and local government receive more generous wage and pension compensation than private sector workers, ceteris paribus. With respect to hourly remuneration (wages plus employer contributions to defined contribution plans), federal workers earn a premium of about 28 log points, taking differences in employee characteristics into account. However, there are no statistically discernible differences between state and local workers and their private sector counterparts, ceteris paribus. These findings are about the same whether or not indicators of occupation are included in the model. On the other hand, pension wealth accumulation is greater for employees in all three government sectors than for private sector workers, even after taking worker characteristics into account. As a proportion of the hourly private-sector wage, the hourly equivalent public-private differentials are about 17.2 percent, 13.4 percent, and 12.6 percent for federal, state, and local workers, respectively. We find no evidence that highly-educated individuals are penalized by taking jobs in the public sector, either with respect to wages or pension wealth.}, keywords = {Demographics, Employment and Labor Force, Pensions, Retirement Planning and Satisfaction}, doi = {10.3386/w19454}, author = {Bewerunge, Philipp and Rosen, Harvey S.} } @article {8954, title = {The Displacement Effect of Public Pensions on the Accumulation of Financial Assets.}, journal = {Fiscal Studies}, volume = {33}, year = {2012}, pages = {107-128}, abstract = {

The generosity of public pensions may depress private savings and provide incentives to retire early. While there is plenty of evidence supporting the latter effect, there remains considerable controversy whether public pensions crowd out private savings. This paper uses international micro-datasets collected over recent years to investigate whether public pensions displace private savings. The identification strategy relies not only on cross-country differences in generosity but also on differences in the progressivity or non-linearity of pension formulas across countries. We estimate that an extra dollar of pension wealth depresses accumulated financial assets around the time of retirement by 22 cents. An extra ten thousand dollars in public pension wealth reduces the average retirement age by roughly one month which implies an elasticity of retirement years with respect to pension wealth of -0.15.

}, keywords = {Finances, Older Adults, Pensions, Retirement Planning and Satisfaction}, issn = {0143-5671}, doi = {10.1111/j.1475-5890.2012.00154.x}, author = {Michael D Hurd and Pierre-Carl Michaud and Susann Rohwedder} } @article {7669, title = {How does health insurance affect the retirement behavior of women?}, journal = {Inquiry}, volume = {48}, year = {2011}, month = {2011 Spring}, pages = {51-67}, publisher = {48}, abstract = {

The availability of health insurance is a crucial factor in the retirement decision. Women are substantially less likely to have health insurance from their own employment. Using the Health and Retirement Study, we examine the role of employer-provided retiree health insurance in the retirement decisions of single women, and women in single-earner and dual-earner couples. We compare the effect of health insurance on female and male retirement. Our results show that retiree health insurance increases retirement for all groups except single men. We find suggestive evidence that the role of health insurance for women hinges on their husbands{\textquoteright} labor force status.

}, keywords = {Decision making, Female, Health Benefit Plans, Employee, Humans, Male, Models, Econometric, Multivariate Analysis, Pensions, Retirement, Spouses, United States, Women, Working}, issn = {0046-9580}, doi = {10.5034/inquiryjrnl_48.01.04}, author = {Kanika Kapur and Jeannette Rogowski} } @article {5709, title = {Forecasting Labor Force Participation and Economic Resources of the Early Baby Boomers}, number = {WP 2008-175}, year = {2008}, institution = {The University of Michigan Retirement Research Center}, address = {Ann Arbor, MI}, abstract = {This paper forecasts the retirement patterns and resources of the Early Baby Boomers by estimating forward-looking dynamic models of labor force participation, wealth accumulation and pension and Social Security benefit claiming for older workers using seven waves of HRSdata. The two most important innovations of our proposed approach are the use of alternative measures of pension entitlements and the associated incentives, and accounting for subjective expectations about future work. Our main findings are that the Early Baby Boomers will work longer and claim Social Security later.}, keywords = {Demographics, Employment and Labor Force, Net Worth and Assets, Pensions}, url = {https://deepblue.lib.umich.edu/handle/2027.42/60324}, author = {Pierre-Carl Michaud and Susann Rohwedder} } @article {5525, title = {Modeling Income in the Near Term: Revised Projections of Retirement Income Through 2020 for the 1931-1960 Birth Cohorts}, year = {2002}, note = {RDA 1998-006}, institution = {The Urban Institute}, address = {Washington, D.C.}, abstract = {The Division of Policy Evaluation (DPE) of the Social Security Administration (SSA) has entered into two contracts with the Urban Institute to help it develop a new tool for analyzing the distributional consequences of Social Security reform proposals. The first, awarded in 1998, led to the development of Modeling Income in the Near Term (MINT), a tool for simulating the retirement incomes of members of the Baby Boom and neighboring cohorts. The second, awarded in 2000, was to expand and improve on the first version of MINT. In all phases of the project, members of the research staff at SSA/DPE collaborated closely with the contractors. The Brookings Institution served as a subcontractor to the Urban Institute under both contracts and the RAND Corporation participated in the development of the initial version of MINT under a separate contract. This report describes the work of the researchers at Urban and Brookings under the second contract.}, keywords = {Disabilities, Net Worth and Assets, Pensions, Social Security}, url = {http://www.urban.org/UploadedPDF/410609_ModelingIncome.pdf}, author = {Toder, Eric and Thompson, Lawrence H. and Melissa Favreault and Richard W. Johnson and Perese, Kevin and Ratcliffe, Caroline and Karen E. Smith and Cori E. Uccello and Timothy A Waidmann and Berk, Jillian and Woldemariam, Romina and Gary T. Burtless and Claudia R Sahm and Douglas A. Wolf} } @inbook {5144, title = {Evaluating Pension Entitlements}, booktitle = {Forecasting Retirement Needs and Retirement Wealth}, year = {2000}, note = {RDA 1996-005; Revision of Pension Research Council Working Paper 98-20 ProCite field 8 : eds.}, pages = {309-326}, publisher = {University of Pennsylvania Press}, organization = {University of Pennsylvania Press}, chapter = {12}, address = {Philadelphia}, keywords = {Net Worth and Assets, Pensions, Public Policy}, url = {https://pensionresearchcouncil.wharton.upenn.edu/publications/books/forecasting-retirement-needs-and-retirement-wealth/}, author = {Alan L Gustman and Olivia S. Mitchell and Andrew A. Samwick and Thomas L. Steinmeier}, editor = {Olivia S. Mitchell and Hammond, B. and Rappaport, A.} } @article {6678, title = {Explaining Applications to the U.S. Disability System: A Semiparametric Approach}, journal = {Journal of Human Resources}, volume = {35}, year = {2000}, pages = {81-115}, publisher = {35}, abstract = {This study investigates the determinants of applications for U.S. disability benefits between, 1986 and 1993 using a semiparametric discrete factor procedure separately for men and women. Approximating a dynamic optimization model, the estimation accounts for a variety of potential biases that were unaddressed in prior studies. Our results indicate different responses of men and women to variations in policy measures. Past labor earnings and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behavior.}, keywords = {Disabilities, Methodology, Pensions, Public Policy, Social Security}, doi = {10.2307/146357}, author = {Kreider, Brent and Riphahn, Regina T.} } @book {5268, title = {Forecasting Retirement Needs and Retirement Wealth}, year = {2000}, note = {RDA 1996-002 ProCite field 8 : eds.}, publisher = {University of Pennsylvania Press}, organization = {University of Pennsylvania Press}, address = {Philadelphia, PA}, abstract = {Thirteen papers draw on data from the Health and Retirement Study and from other sources to explore people{\textquoteright}s preparation for and the financial challenges of retirement in the United States. Papers discuss new paths to retirement; how prepared Americans are for retirement; projected retirement wealth and saving adequacy; individual savings and investment choices associated with 401(k) plans; factors explaining retirement savings shortfalls; women{\textquoteright}s economic well -being at the end of their work lives and the factors that appear to be associated with the poorer economic status of older women relative to older men; the prospects for widow poverty; minorities facing retirement; early retirement windows; the relationship between people{\textquoteright}s expectations about their retirement, their realizations of retirement, and the role of health shocks in this process; planning for health care needs in retirement; the evaluation of pension entitlements; social security earnings and projected benefits. Mitchell is at the Wharton School, University of Pennsylvania. Hammond is with the Teachers Insurance Annuity Association-College Retirement Equities Fund (TIAA -CREF). Rappaport is at William M. Mercer, Inc. Index.}, keywords = {Consumption and Savings, Health Conditions and Status, Healthcare, Pensions, Retirement Planning and Satisfaction, Women and Minorities}, url = {https://pensionresearchcouncil.wharton.upenn.edu/publications/books/forecasting-retirement-needs-and-retirement-wealth/}, author = {Olivia S. Mitchell and P. Brett Hammond and Anna M. Rappaport} } @inbook {5170, title = {Social Security Earnings and Projected Benefits}, booktitle = {Forecasting Retirement Needs and Retirement Wealth}, year = {2000}, pages = {327-359}, publisher = {Univ. of Pennsylvania Press}, organization = {Univ. of Pennsylvania Press}, address = {Philadelphia}, keywords = {Pensions, Social Security}, author = {Olivia S. Mitchell and Olson, Jan and Thomas L. Steinmeier}, editor = {Olivia S. Mitchell and Hammond, B. and Rappaport, A.} } @article {6635, title = {Effect of Pensions on Saving: Analysis with Data from the Health and Retirement Study: A Comment}, journal = {Carnegie Rochester Conference Series on Public Policy}, volume = {50}, year = {1999}, pages = {325-35}, publisher = {50}, keywords = {Consumption and Savings, Employment and Labor Force, Income, Pensions, Retirement Planning and Satisfaction, Social Security}, doi = {10.1016/S0167-2231(99)00031-7}, author = {Rust, John} } @article {5326, title = {Applications to the U.S. Disability Program: A Semiparametric Approach}, year = {1996}, institution = {Center for Economic Policy Research}, abstract = {This study investigates the determinants of applications for US disability benefits between 1986 and 1993 using a semiparametric discrete factor procedure. Approximating a dynamic optimization model, the estimation carefully accounts for a variety of potential biases that weren{\textquoteright}t addressed in previous studies. Our results indicate vast differences in the responses of men and women to variations in policy measures. Past labour earnings and fringe benefits as well as benefit eligibility and benefit amounts clearly affect application behaviour.}, keywords = {Disabilities, Methodology, Pensions}, url = {https://ideas.repec.org/p/cpr/ceprdp/1559.html}, author = {Kreider, Brent and Riphahn, Regina T.} }