34 Pages Posted: 11 Aug 2014 Last revised: 21 Aug 2014
Date Written: August 2014
This article discusses the evolution of retirement income funds from defined benefit packages to 401(k) and IRA accounts and how the changing dynamic has reshaped the way retirees think about post-retirement income. The article outlines the mechanics of 401(k) accounts and rollover IRAs in the post-retirement period and presents questions about the ability of retirees to successfully address the complex issues relating to investment choices including, what entity they entrust their savings to, the volume and source of distributions, and long-term sufficiency planning. The article suggests that an increase in the use of annuities may help to resolve some of the challenges faced by today’s retirees.
Keywords: Pension, Annuity, Elderly, Capacity, Retirement, 401(k), Individual retirement account
JEL Classification: J26, J14, K19
Suggested Citation: Suggested Citation
Frolik, Lawrence A., Rethinking ERISA's Promise of Income Security in a World of 401(k) Plans (August 2014). Connecticut Insurance Law Journal, Vol. 20, p. 371, 2014; U. of Pittsburgh Legal Studies Research Paper No. 2014-26. Available at SSRN: https://ssrn.com/abstract=2470019