Retirement Plan Choices and Outcomes

Posted: 3 Mar 2006

See all articles by S. Gowri Shankar

S. Gowri Shankar

University of Washington, Bothell School of Business

James M. Miller

University of Washington, Bothell - Business

Abstract

Employees are increasingly opting for defined contribution plans over defined benefit plans when given a choice. But this may not always be the best option. Using data from retirement plans available to employees of public educational institutions we show that, over the last fifty years, employees opting for defined benefit plans would have earned higher pension annuities than defined contribution plan participants in a suprisingly large number of scenarios. This is particularly true for employees who worked in an educational institution for 25 years or less before retirement.

Keywords: defined-benefit, defined-contribution, TIAA-CREF, university employees, retirement plans

Suggested Citation

Shankar, S. Gowri and Miller, James M., Retirement Plan Choices and Outcomes. Business Horizons, Vol. 46, No. 4, pp. 53-60, 2003. Available at SSRN: https://ssrn.com/abstract=886148

S. Gowri Shankar (Contact Author)

University of Washington, Bothell School of Business ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States

James M. Miller

University of Washington, Bothell - Business ( email )

18115 Campus Way NE
Bothell, WA 98011-8246
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
588
PlumX Metrics