@article {8368, title = {Health and Mortality Delta: Assessing the Welfare Cost of Household Insurance Choice}, journal = {Journal of Finance}, volume = {71}, year = {2016}, note = {Times Cited: 0 0}, pages = {957-1010}, publisher = {71}, abstract = {We develop a pair of risk measures, health and mortality delta, for the universe of life and health insurance products. A life-cycle model of insurance choice simplifies to replicating the optimal health and mortality delta through a portfolio of insurance products. We estimate the model to explain the observed variation in health and mortality delta implied by the ownership of life insurance, annuities including private pensions, and long-term care insurance in the Health and Retirement Study. For the median household aged 51 to 57, the lifetime welfare cost of market incompleteness and suboptimal choice is 3.2 of total wealth.}, keywords = {Health Conditions and Status, Insurance, Net Worth and Assets, Pensions}, doi = {10.1111/jofi.12273}, author = {Koijen, Ralph S. J. and Van Nieuwerburgh, Stijn and Yogo, Motohiro} } @article {8143, title = {How much do respondents in the health and retirement study know about their contributions to tax-deferred contribution plans? A cross-cohort comparison}, journal = {Journal of Pension Economics and Finance}, volume = {14}, year = {2015}, note = {Export Date: 6 August 2014 Article in Press}, pages = {203-239}, publisher = {14}, abstract = {We use information from Social Security earnings records to examine the accuracy of survey responses regarding participation in tax-deferred pension plans. As employer-provided defined benefit pensions are replaced by voluntary contribution plans, employees{\textquoteright} understanding of the link between their annual contributions and their post-retirement wealth is becoming increasingly important. We examine the extent to which wage-earners in the Health and Retirement Study (HRS) correctly report their inclusion in tax-deferred contribution plans and, conditional on inclusion, their annual contributions. We use three samples representing different cohorts in three different periods: the original HRS cohort interviewed in 1992 at ages 51-56, the War Babies cohort interviewed in 1998 at ages 51-56, and the Early Baby Boomer cohort interviewed in 2004 at the same ages. Our findings indicate that while respondents interviewed in 1998 and 2004 were more likely to correctly report whether they were included in defined contribution plans, they were no more accurate when reporting whether they had contributed to their plans than respondents interviewed in 1992. Contributors in the three cohorts, moreover, overstated their annual contributions and thus would be likely to realize lower than expected account balances at retirement. The magnitude of this error is not negligible. In all three cohorts, the mean reporting error (the absolute difference between respondent-reported and Social Security earnings record contributions) was approximately 1.5 times larger than the mean contribution in the W-2 earnings record. Copyright Cambridge University Press 2014 This is a work of the U.S. Government and is not subject to copyright protection in the United States.}, keywords = {Employment and Labor Force, Pensions, Social Security}, doi = {10.1017/S1474747214000237}, author = {Irena Dushi and Honig, Marjorie} } @mastersthesis {6248, title = {How does personality contribute to retirement savings?}, volume = {3668774}, year = {2014}, note = {Copyright - Copyright ProQuest, UMI Dissertations Publishing 2014 Last updated - 2015-01-17 First page - n/a}, month = {2014}, pages = {189}, school = {Purdue University}, type = {Ph.D.}, address = {West Lafayette, IN}, abstract = {The aim of this dissertation was to explore how personality factors explain retirement savings over time. Past studies did not systematically examine individual characteristics on financial preparation for retirement or did not adopt a monetary outcome to exemplify retirement investments. Thus, this dissertation modeled two outcomes for retirement savings, i.e., Individual Retirement Accounts (IRAs) ownership and IRA balances. Guided by the Investor Behavior Model and the Behavioral Economics Perspective, conscientiousness and personal mastery were hypothesized to bolster IRA investments, while agreeableness and perceived constraints were hypothesized to undermine IRA investments. Multilevel model techniques were applied to depict the trajectory of IRA investments with longitudinal data from the Health and Retirement Study (HRS 2006, 2008, 2010). Findings were partly consistent with hypotheses. The Individual Sample ( N = 4,117) documented that higher levels of conscientiousness and personal mastery predicted greater odds of IRA ownership. Perceived constraints were associated with lower odds of IRA ownership, while agreeableness was linked to lower IRA balances. Saving horizons and financial controls were found to partially mediate the relationship between personality factors and IRA investments. Based on the findings from the Individual Sample, a Spousal Sample ( N = 4,257) was developed to examine whether perceived spousal relationship qualities accounted for IRA investments above and beyond personality factors. In addition, perceived spousal relationship qualities were explored to mitigate or accentuate the effects of personality factors. Relationship strain was found to undermine IRA ownership while spousal support was associated with higher IRA balances. Interaction effects of spousal relationships were detected only for exploratory personality traits (i.e., openness and extraversion) for IRA ownership. Overall, findings provided empirical support for theoretical perspectives that include personality factors as impacting retirement preparations. Likewise, personality factors demonstrated differential effects on IRA outcomes. With regard to practical implications, this dissertation provides educators and policymakers with insights to improve the existing financial education and social welfare systems.}, keywords = {Adult children, Health Conditions and Status, Methodology, Pensions, Public Policy, Retirement Planning and Satisfaction}, url = {http://proxy.lib.umich.edu/login?url=http://search.proquest.com/docview/1645735812?accountid=14667http://mgetit.lib.umich.edu/?ctx_ver=Z39.88-2004\&ctx_enc=info:ofi/enc:UTF-8\&rfr_id=info:sid/Dissertations+\%26+Theses+\%40+CIC+Institutions\&rft_val_fmt=info:of}, author = {Chan, Wai} } @article {8129, title = {How does retiree health insurance influence public sector employee saving?}, journal = {Journal of health economics}, volume = {38}, year = {2014}, note = {Times Cited: 0 0}, pages = {109-18}, publisher = {38}, abstract = {Economic theory predicts that employer-provided retiree health insurance (RHI) benefits have a crowd-out effect on household wealth accumulation, not dissimilar to the effects reported elsewhere for employer pensions, Social Security, and Medicare. Nevertheless, we are unaware of any similar research on the impacts of retiree health insurance per se. Accordingly, the present paper utilizes a unique data file on respondents to the Health and Retirement Study, to explore how employer-provided retiree health insurance may influence net household wealth among public sector employees, where retiree healthcare benefits are still quite prevalent. Key findings include the following:}, keywords = {Demographics, Pensions, Public Policy, Retirement Planning and Satisfaction}, doi = {10.1016/j.jhealeco.2014.03.014}, author = {Robert Clark and Olivia S. Mitchell} } @article {8030, title = {How is economic hardship avoided by those retiring before the Social Security entitlement age?}, journal = {Journal of Pension Economics and Finance}, volume = {13}, year = {2014}, pages = {420-438}, publisher = {13}, abstract = {Governments around the world are reacting to extended lifespans and troubled pension finances by increasing the age of retirement benefit entitlement. This paper studies those who retire before the age of full pension entitlement in the USA using data drawn from the Health and Retirement Study. The major finding is that four out of five people who have zero earnings at pre-entitlement ages are able to find a way to lift their incomes over the poverty line. For men, pension and annuity income are important while for women, spousal income helps most to get them over the line.}, keywords = {Health Conditions and Status, Income, Net Worth and Assets, Pensions, Retirement Planning and Satisfaction, Social Security}, doi = {10.1017/S1474747214000171}, author = {Kevin Milligan} } @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} } @inbook {8646, title = {Human Capital Risk and Pension Outcomes}, booktitle = {Evaluating the Financial Performance of Pension Funds}, year = {2010}, pages = {119-151}, publisher = {World Bank}, organization = {World Bank}, address = {Washington, DC}, keywords = {Older Adults, Pensions, Retirement Planning and Satisfaction, Risk Factors}, author = {Olivia S. Mitchell and John A. Turner} } @article {5767, title = {How Do Pensions Affect Household Wealth Accumulation?}, year = {2009}, abstract = {Empirical analysis of the effects of pensions on saving behavior is usually based on a highly stylized version of the life cycle model, with a fixed retirement age, a perfect capital market, no uncertainty, and no institutional constraints on pensions. The model predicts one-for-one crowd out of household wealth by pension wealth over the life cycle. Empirical estimates of crowd out are usually much closer to zero, and it is not well understood whether such estimates are accurate indications of the true magnitude of crowd out or whether the strong assumptions imposed in the analysis result in severe misspecification. In this paper, I specify a richer life cycle model in which several of the key restrictions of the simple model are relaxed. The effects of pensions on household wealth are analyzed by solving and simulating the model. The compensating variation associated with pensions is treated as a measure of crowd out. The simulated data are then used to estimate regressions like those typically found in the literature. Preliminary results indicate that regression estimates of the effects of pensions on wealth accumulation estimated under the assumptions of the typical stylized life cycle model are quite misleading when those assumptions do not hold. Specifically, the extent of crowd out is substantially underestimated in the regression approach. This finding may help explain the common although not universal empirical finding of small crowd out.}, keywords = {Consumption and Savings, Methodology, Pensions, Public Policy}, url = {https://www.semanticscholar.org/paper/How-Do-Pensions-Affect-Household-Wealth-Blau/03d49b368eaf5902b759425b6c5554a3afaf36f8}, author = {David M. Blau} } @article {5725, title = {How Much Do Respondents in the Health and Retirement Study Know About Their Tax-deferred Contribution Plans? A Crosscohort Comparison}, number = {WP 2008-201}, year = {2008}, institution = {Michigan Retirement Research Center, University of Michigan}, address = {Ann Arbor, MI}, abstract = {We use information from Social Security earnings records to examine the accuracy of survey responses regarding participation in tax-deferred pension plans. As employer-provided defined benefit pensions are replaced by voluntary contribution plans, employees understanding of the link between their annual contribution decisions and their post-retirement wealth is becoming increasingly important. We examine the extent to which wage-earners in the Health and Retirement Study correctly report their inclusion in tax-deferred contribution plans and, conditional on inclusion, their annual contributions. We use two samples representing different cohorts in two different periods: the original HRS cohort interviewed in 1992 at ages 51-61, and a combination of the War Babies and Early Baby Boomer cohorts at the same ages interviewed twelve years later. Our findings indicate that while respondents interviewed in 2004 were more likely to report correctly whether they were included in DC plans, they were no more accurate in reporting whether they contributed to their plans than respondents interviewed in 1992. Respondents in both cohorts, moreover, overestimated their annual contributions. In both 1992 and in 2004, the mean absolute difference between respondent-reported and Social Security earnings record contributions was 1.5 times larger than the mean earnings record contribution.}, keywords = {Pensions, Social Security}, url = {https://deepblue.lib.umich.edu/bitstream/handle/2027.42/64473/wp201.pdf?sequence=1\&isAllowed=y}, author = {Irena Dushi and Honig, Marjorie} } @article {5690, title = {How do Immigrants Fare in Retirement?}, number = {WP 2007-169}, year = {2007}, institution = {Michigan Retirement Research Center, University of Michigan}, address = {Ann Arbor, MI}, abstract = {Existing literature suggests that immigrants receive lower wages than U.S.-born workers with similar characteristics. This could imply that immigrant households would enter retirement at a significant financial disadvantage. In this paper, we examine the retirement resources available to immigrant families by examining Social Security benefits, pension coverage, and private wealth accumulation. Our results suggest that although immigrant families may be financially better-off in the U.S. than in their native countries, they do enter retirement at a significant financial disadvantage relative to native born households with similar characteristics.}, keywords = {Demographics, Net Worth and Assets, Pensions, Social Security}, url = {https://deepblue.lib.umich.edu/handle/2027.42/57433}, author = {Purvi Sevak and Lucie Schmidt} } @article {5557, title = {How Do Cash Balance Plans Affect the Pension Landscape?}, year = {2003}, institution = {Boston College, Center for Retirement Research}, keywords = {Pensions, Retirement Planning and Satisfaction}, url = {http://www.bc.edu/centers/crr/issues/ib_14.pdf}, author = {Kevin E. Cahill and Soto, Mauricio} } @article {5556, title = {How Has the Shift to 401(k)s Affected the Retirement Age?}, year = {2003}, institution = {Boston College, Center for Retirement Research}, keywords = {Pensions, Retirement Planning and Satisfaction}, url = {http://www.bc.edu/centers/crr/}, author = {Alicia H. Munnell and Kevin E. Cahill and Natalia A. Jivan} } @article {5498, title = {How Important Are Private Pensions?}, number = {IB$\#$8}, year = {2002}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, abstract = {Employer-provided pensions play an important role in assuring a comfortable retirement. In 1992, they accounted for about 20 percent of the total wealth of middle-income households aged 51-61, second only to Social Security. However, many workers still lack pension coverage. After increasing sharply in the post-World War II period, the percentage of the private sector workforce covered by an employer-sponsored pension plan at any given point in time has remained around 50 percent since the 1970s. This constancy obscures two major changes, however. First, pension coverage has increased for women and declined for men, primarily reflecting the increased earnings and labor force participation of women and a decline for men in union membership and employment in large manufacturing firms. Second, a major shift has occurred in the types of plans from defined benefit to defined contribution. Defined benefit plans generally provide retired workers with a set amount based on their salary history, while benefits under defined contribution plans depend on the accumulated amount in a worker{\textquoteright}s account. The shift to defined contribution plans reflects employment trends as well as conversion of plans{\textellipsis}}, keywords = {Employment and Labor Force, Income, Net Worth and Assets, Pensions}, url = {https://crr.bc.edu/briefs/how-important-are-private-pensions/}, author = {Alicia H. Munnell and Sund{\'e}n, Annika and Lidstone, Elizabeth} } @article {5435, title = {Have 401(k)s Raised Household Saving? Evidence from the Health and Retirement Study}, number = {24}, year = {2001}, institution = {Syracuse University}, address = {Syracuse, NY}, abstract = {The 401(k) pension plan has become the most widespread retirement saving plan since its creation in 1978. At the same time there has been a great deal of debate over the amount that this plan actually effects the financial savings of a household. In this article it is believed that there are fundamental biases in estimating saving effects because of the many ways of saving. After going over numerous studies dealing with 401(k) plans effects on savings, the author thoroughly discusses evidence from the first wave (1992) of the Health and Retirement Study. By way of in-depth analysis it is concluded that 401(k) plans have little effect on a households saving. Only in lower-to-middle income households is saving likely to be widely effected by 401(k) plans.}, keywords = {Consumption and Savings, Pensions}, url = {https://www.maxwell.syr.edu/uploadedFiles/cpr/publications/aging_studies/age24.pdf}, author = {Gary V. Engelhardt} } @article {5442, title = {How Does Dipping into Your Pension Affect Your Retirement Wealth?}, year = {2001}, institution = {Syracuse University}, keywords = {Net Worth and Assets, Pensions}, author = {Gary V. Engelhardt} } @article {5422, title = {How Should We Insure Longevity Risk in Pensions and Social Security?}, number = {IB$\#$4}, year = {2000}, institution = {Center for Retirement Research at Boston College}, address = {Boston}, keywords = {Health Conditions and Status, Pensions, Social Security}, url = {https://crr.bc.edu/briefs/how-should-we-insure-longevity-risk-in-pensions-and-social-security/}, author = {Brown, Jeffrey R.} } @article {5342, title = {Health Insurance and Retirement in the 1990s: A Dynamic Structural Analysis}, year = {1997}, note = {RDA}, institution = {University of North Carolina-Chapel Hill}, keywords = {Medicare/Medicaid/Health Insurance, Pensions}, author = {David M. Blau and Gilleskie, Donna B.} } @article {5304, title = {How Does Pension Coverage Affect Household Saving. Final Report}, year = {1994}, institution = {Washington, DC, Urban Institute}, abstract = {This paper analyzes the extent to which substitution between pension coverage and household-level saving occurs at the micro level. Data from the beta release of the Health and Retirement Study (HRS) which covered people age 51 to 61 in 1992 is used. The results are mixed. Although there appears to be some substitution between household saving and pension coverage in the top half of the income distribution, the level differences in accumulated wealth seem to fall short of complete offset. Evidence that household wealth accumulation does not vary significantly by type of pension coverage is also found. The paper explores various explanations for why the pension offset is missing or incomplete.}, keywords = {Adult children, Consumption and Savings, Employment and Labor Force, Income, Methodology, Pensions, Retirement Planning and Satisfaction}, author = {Sabelhaus, J.} }