Worker Knowledge of Pension Provisions

29 Pages Posted: 6 Apr 2007 Last revised: 6 Feb 2022

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

University of Pennsylvania - The Wharton School; University of Pennsylvania - The Wharton School, Pension Research Council; National Bureau of Economic Research (NBER)

Date Written: October 1987

Abstract

This paper evaluates the quality of workers' information regarding pension offerings using both administrative records and worker reports of pension provisions. Missing and misinformation proves to be widespread. Unionized employees, higher income workers and those in large firms, the better educated, and those with greater seniority are better informed about their pensions. There are also demographic differences: nonwhites have less pension knowledge than whites, but women are better informed than men along several pension dimensions. Myopia about pension incentive structures is troubling since workers may save or consume suboptimally, change jobs, or retire earlier than they would have if equipped with better pension information. The prevalence of missing data should also be troubling to empirical pension analysts using data sets reporting workers' assessments of pension provisions.

Suggested Citation

Mitchell, Olivia S., Worker Knowledge of Pension Provisions (October 1987). NBER Working Paper No. w2414, Available at SSRN: https://ssrn.com/abstract=977439

Olivia S. Mitchell (Contact Author)

University of Pennsylvania - The Wharton School ( email )

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University of Pennsylvania - The Wharton School, Pension Research Council ( email )

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