Role of 401(K) Accumulations in Providing Future Retirement Income
Published in Blitzstein, D., O. Mitchell, and S. Utkus (Eds.) (2006). Restructuring Retirement Risks. Oxford, UK: Oxford University Press.
Posted: 2 Nov 2005 Last revised: 3 Apr 2020
Date Written: 2005
Abstract
Defined contribution (DC) plans are increasingly being offered as the primary employer-sponsored pension, so it is of interest to ask whether DC accumulations are likely to yield sufficient income in retirement. This chapter uses the EBRI/ICI 401(k) Accumulation Projection Model to explore alternative future scenarios for retirees having had 401(k) plans available over a full working career. We assess the impact of catch-up contributions recently permitted by legislation; saving through individual retirement accounts if the employer does not offer a 401(k) plan; and changing the retirement age.
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