Role of 401(k) Accumulations in Providing Future Retirement Income
Investment Company Institute
Employee Benefit Research Institute (EBRI)
Pension Research Council WP2005-9
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.
Number of Pages in PDF File: 27
Date posted: November 2, 2005