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Learning by doing: Active employer sponsored retirement savings plan participation and household wealth accumulation

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  • Seligman, Jason S.
  • Bose, Rana
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    Abstract

    This paper investigates the impact of household exposure to employer pension plan features using the Health and Retirement Survey. We investigate whether exposure to active management (choice) or participation in plan-sponsored financial education seminars impacts household portfolio allocations and wealth. We consider interactions between pension design and investment patterns outside of workers’ pension plans, utilizing two parametric estimators: the random effects probit and the multivariate probit. We extend our results non-parametrically via propensity score matching. We find repeated evidence that both of the plan features improve asset allocations and financial outcomes for recent retirees, especially when used together.

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    File URL: http://www.sciencedirect.com/science/article/pii/S1062976912000129
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    Bibliographic Info

    Article provided by Elsevier in its journal The Quarterly Review of Economics and Finance.

    Volume (Year): 52 (2012)
    Issue (Month): 2 ()
    Pages: 162-172

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    Handle: RePEc:eee:quaeco:v:52:y:2012:i:2:p:162-172

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    Web page: http://www.elsevier.com/locate/inca/620167

    Related research

    Keywords: Financial education; Employer-based financial services; Household savings;

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    References

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    14. Julie R. Agnew & Lisa R. Anderson & Jeffrey R. Gerlach & Lisa R. Szykman, 2008. "Who Chooses Annuities? An Experimental Investigation of the Role of Gender, Framing, and Defaults," American Economic Review, American Economic Association, vol. 98(2), pages 418-22, May.
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    Cited by:
    1. Miller, Margaret & Reichelstein, Julia & Salas, Christian & Zia, Bilal, 2014. "Can you help someone become financially capable ? a meta-analysis of the literature," Policy Research Working Paper Series 6745, The World Bank.

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