Deferring Income in Employer-Sponsored Retirement Plans: The Dynamics of Participant Contributions

48 Pages Posted: 16 Jun 2008

See all articles by Karen E. Smith

Karen E. Smith

Urban Institute

Richard W. Johnson

Urban Institute - Income and Benefits Policy Center; National Academy of Social Insurance (NASI)

Leslie Muller

Social Security Administration

Date Written: August 2004

Abstract

This paper describes contributions to employer-sponsored retirement accounts, using newly available longitudinal data that combine administrative earnings records with survey data. The results reveal a fair amount of individual variability in contribution rates over time. However, potential negative shocks to income and increases in current consumption needs do not appear to lead workers to curtail their contributions. Instead, workers appear to raise their contribution rates after they have achieved key milestones in the lifecourse, such as the birth of a child or the purchase of a home.

Suggested Citation

Smith, Karen E. and Johnson, Richard Warren and Muller, Leslie, Deferring Income in Employer-Sponsored Retirement Plans: The Dynamics of Participant Contributions (August 2004). Available at SSRN: https://ssrn.com/abstract=1145542 or http://dx.doi.org/10.2139/ssrn.1145542

Karen E. Smith (Contact Author)

Urban Institute ( email )

2100 M Street, NW
Washington, DC 20037
United States

Richard Warren Johnson

Urban Institute - Income and Benefits Policy Center ( email )

2100 M Street, NW
Washington, DC 20037
United States
202-261-5541 (Phone)
202-833-4388 (Fax)

National Academy of Social Insurance (NASI)

1776 Massachusetts Avenue, NW
Suite 615
Washington, DC 20036-1904
United States

Leslie Muller

Social Security Administration ( email )

Washington, DC 20254
United States

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