The Impact of Retirement Savings Methods on Retiree Satisfaction
Albanese, Joseph Jerome
Eissa, Nada O.
This paper examines the relationship between sources of retirement income and self-reported retirement satisfaction, as well as the role of financial behavior in retirement savings decisions. The changing landscape of private retirement savings, especially the shift from defined-benefit pensions to defined-contribution plans and IRAs, raises the question of which savings method is associated with the best outcomes. Data from the Health and Retirement Survey show retirees who rely on income from employer-sponsored retirement plans report higher retirement satisfaction than those who depend on Social Security benefits, who in turn report higher satisfaction than those who rely on IRAs. Meanwhile, satisfaction among retirees who participate in defined-benefit pensions exceeds that of those who own defined-contribution plans. Data from the Survey of Consumer Finance additionally indicate that those with worse saving habits and greater aversion to financial risk tend to be less likely to participate in defined-contribution plans and tend to have lower retirement incomes.
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Lampert, Jacqueline Garry (2006-04-17)This analysis uses data from the 2001 Survey of Consumer Finances to examine the influence of the adequacy of expected retirement income from Social Security and job pensions on the decision of young people (aged 18 - 34) ...