Lessons from Behavioral Finance for Retirement Plan Design

PRC Working Paper No. 2003-6

52 Pages Posted: 24 Nov 2003

See all articles by Olivia S. Mitchell

Olivia S. Mitchell

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

Stephen P. Utkus

Vanguard Center for Investor Research

Date Written: October 2003

Abstract

This paper evaluates some of the key lessons of behavioral economics and finance research over the last decade for pension plan design. We divide the discussion into the natural phases of the retirement saving life cycle: accumulation, investment, and decumulation. After reviewing the lessons of behavioral finance, we conclude by outlining plan design alternatives that would be of use to plan sponsors and policymakers seeking to design more cost-effective and efficient retirement plans for the future.

Suggested Citation

Mitchell, Olivia S. and Utkus, Stephen P., Lessons from Behavioral Finance for Retirement Plan Design (October 2003). PRC Working Paper No. 2003-6. Available at SSRN: https://ssrn.com/abstract=464640 or http://dx.doi.org/10.2139/ssrn.464640

Olivia S. Mitchell

University of Pennsylvania - The Wharton School ( email )

Philadelphia, PA 19104-6365
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Stephen P. Utkus (Contact Author)

Vanguard Center for Investor Research ( email )

100 Vanguard Boulevard, M38
Malvern, PA 19355
United States
610-669-6308 (Phone)

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