학술논문
The Design and Welfare Implications of Mandatory Pension Plans.
Document Type
Article
Author
Source
Subject
*Pensions
*Employee savings plans
*Retirement planning
*Individual retirement accounts
*Life cycle hypothesis (Economic theory)
*Retirement income
*Annuities
Rules
Procrastination
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Language
ISSN
0022-1090
Abstract
In a rich, calibrated life-cycle model, we show that well-designed mandatory pension plans significantly improve the welfare of individuals procrastinating on savings, and even improve most rational individuals' welfare through a return tax advantage and fair annuitization. For a group of heterogeneous savers, in terms of preferences and sophistication, the best plan has contributions of 10% of income from age 30, a glidepath investment strategy, payouts following a variable lifelong annuity, and options to choose a different investment strategy and to modify the annuitization feature. This plan generates an average welfare gain of $175,000 per individual. [ABSTRACT FROM AUTHOR]