The Decline of Defined Benefit Retirement Plans and Asset Flows

48 Pages Posted: 20 Jan 2007 Last revised: 28 Jul 2010

See all articles by James M. Poterba

James M. Poterba

National Bureau of Economic Research (NBER); Massachusetts Institute of Technology (MIT) - Department of Economics

Steven F. Venti

Dartmouth College - Department of Economics; National Bureau of Economic Research (NBER)

David A. Wise

National Bureau of Economic Research (NBER); Harvard University - Harvard Kennedy School (HKS)

Date Written: January 2007

Abstract

Demographic change can have an important effect on the stock of assets held in defined benefit pension plans. This paper projects the impact of changes in the age structure of the U.S. population between 2005 and 2040 on the stock of assets held by these plans. It projects the contributions to and withdrawals from these plans. These projections are combined with estimates of the future evolution of assets in 401(k)-like plans to describe the prospective impact of demographic change on the stock of assets in retirement plans. Information on demography-linked changes in asset demand is a critical input to evaluating the potential impact of population aging on asset returns.

Suggested Citation

Poterba, James M. and Venti, Steven F. and Wise, David A., The Decline of Defined Benefit Retirement Plans and Asset Flows (January 2007). NBER Working Paper No. w12834. Available at SSRN: https://ssrn.com/abstract=958486

James M. Poterba

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
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Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Cambridge, MA 02142
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617-253-1330 (Fax)

Steven F. Venti

Dartmouth College - Department of Economics ( email )

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Hanover, NH 03755
United States
603-646-2526 (Phone)
603-646-2122 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

David A. Wise (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Harvard University - Harvard Kennedy School (HKS)

79 John F. Kennedy Street
Cambridge, MA 02138
United States

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