Plan Design and Participant Behavior in Defined Contribution Retirement Plans: Past, Present, and Future

Jonathan Reuter
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Abstract

This paper provides a state-of-the-art overview of defined contribution retirement plan design for academics, policy makers, and industry participants. I begin by considering the impact of basic plan design on participation rates, contribution rates, and portfolio choice, both overall and among employees with lower levels of financial literacy. Next, I consider the short-term and longer-term impacts of automatic enrollment and default investment options, including potential negative effects with respect to participant engagement. I also ask how the framing of plan features and plan communication can impact participant behavior. Finally, I examine recent plan changes including the integration of life annuities into retirement plans and target date funds (TDFs), managed accounts as alternatives to TDFs, emergency savings accounts, state-sponsored retirement plans, and national legislation like SECURE 2.0 that is intended to increase plan access and opportunities for employer matches.
固定缴费退休计划的计划设计与参与者行为:过去、现在和未来
本文为学术界、政策制定者和行业参与者提供了关于固定缴费退休计划设计的最新概述。首先,我考虑了基本计划设计对参与率、缴费率和投资组合选择的影响,包括整体影响和对金融知识水平较低的员工的影响。接下来,我考虑了自动加入和默认投资选择的短期和长期影响,包括对参与者参与的潜在负面影响。我还询问了计划特点的框架和计划沟通如何影响参与者的行为。最后,我研究了近期的计划变化,包括将人寿年金纳入退休计划和目标日期基金(TDFs)、作为 TDFs 替代方案的管理账户、应急储蓄账户、国家发起的退休计划,以及旨在增加计划参与度和雇主匹配机会的 SECURE 2.0 等国家立法。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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