Retirement Savings

A Tale of Decisions and Defaults

Datos Bibliográficos

ID9707747
AutoresLoretti Dobrescu (0000-0003-4533-9561, UNSW Sydney), Loretti Isabella Dobrescu (UNSW Sydney), Xiaodong Fan (0000-0002-7904-0173, UNSW Sydney), Hazel Bateman (0000-0002-6997-938X, UNSW Sydney), Ben R Newell (0000-0003-1898-205X, UNSW Sydney), Andreas Ortmann (0000-0001-9466-5051, UNSW Sydney), Susan Thorp (0000-0003-3462-0876, The University of Sydney)
Año2018
Volumen128
Número610
Páginas1047-1094
Fecha de publicación2018-05-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12447
OpenAlexW3123669178
IdiomaEN
Citas recibidas4
Referencias citadas59

© 2017 Royal Economic Society (Registered Charity No. 231508). This study develops a structural dynamic life-cycle model to examine the behavior of members of an industry-wide pension fund to assess both the prevalence of defaults and their impact on retirement savings. We estimate the model using the simulated method of moments on administrative data from a large Australian pension fund. Our results show that default settings strongly influence wealth accumulation. Such settings are also highly persistent, both over time and across decisions. Overall, the findings suggest that if defaults (particularly the irreversible ones) are not carefully designed, retirement savings can be severely affected

Actuarial science · Default · Econometrics · Economics · Pension · Pension Fund · Finance · Financial Literacy, Pension, Retirement Analysis · Insurance, Mortality, Demography, Risk Management · Retirement, Disability, and Employment