Owing it to yourself: Testing a duty-based argument for retirement saving

2009 ◽  
Author(s):  
Christopher J. Bryan ◽  
Hal Ersner-Hershfield ◽  
Lee Ross
Keyword(s):  
Retirement Saving

scholarly journals A comparison of retirement saving using discretionary investment and Regulation 28

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Gizelle D. Willows ◽  
Thomas Burgers ◽  
Darron West
Keyword(s):  
South Africa ◽  
South African ◽  
Asset Allocation ◽  
Pension Funds ◽  
Investment Risk ◽  
Retirement Savings ◽  
Primary Reason ◽  
Risk And Return ◽  
Retirement Saving ◽  
Retirement Fund

Background: There is growing uncertainty in global society with regard to how retirement savings should be approached. The primary reason for this is that most societies do not save enough and their citizens run out of money during retirement. Aim: This study investigates whether the limitations imposed by Regulation 28 of the Pension Funds Act of South Africa encourage optimal asset allocation and reduce investment risk for retirement savings when contrasted with discretionary investment. Setting: The study looks at hypothetical individuals who are subject to tax and retirement consequences as administered by South African legislation. Methods: A quantitative risk and return analysis was performed while considering two hypothetical investors who are identical in all aspects other than their choice of investments. Results: The findings indicate that Regulation 28 is effective in reducing the investment risk of retirement savings; however, it may also force the investor to sacrifice wealth. Conclusion: Depending on the tax bracket in which the investor sits, discretionary investment may be preferential to investing in a retirement fund under the mandate of Regulation 28.

Choice Architecture and Retirement Saving Plans

2007 ◽  
Author(s):  
Shlomo Benartzi ◽  
Ehud Peleg ◽  
Richard H. Thaler
Keyword(s):  
Choice Architecture ◽  
Retirement Saving

scholarly journals You owe it to yourself: Boosting retirement saving with a responsibility-based appeal.

2012 ◽  
Vol 141 (3) ◽  
pp. 429-432 ◽  
Author(s):  
Christopher J. Bryan ◽  
Hal E. Hershfield
Keyword(s):  
Retirement Saving

The power of working longer

2019 ◽  
Vol 18 (04) ◽  
pp. 623-644 ◽  
Author(s):  
Gila Bronshtein ◽  
Jason Scott ◽  
John B. Shoven ◽  
Sita Nataraj Slavov
Keyword(s):  
Basic Result ◽  
Married Couples ◽  
Standard Of Living ◽  
Relative Power ◽  
Income Levels ◽  
Labor Earnings ◽  
Retirement Saving ◽  
Wide Range ◽  
Social Security Benefits ◽  
Retirement Study

AbstractThis paper compares the relative strengths of working longer vs. saving more in terms of increasing a household's affordable, sustainable standard of living in retirement. Both stylized households and actual households from the Health and Retirement Study are examined. We assume that workers commence Social Security benefits when they retire. The basic result is that delaying retirement by 3–6 months has the same impact on the retirement standard of living as saving an additional one-percentage point of labor earnings for 30 years. The relative power of saving more is even lower if the decision to increase saving is made later in the work life. For instance, increasing retirement saving by one percentage point 10 years before retirement has the same impact on the sustainable retirement standard of living as working between 1 and 2 months longer. The calculations of the relative power of working longer and saving more are done for a wide range of realized rates of returns on saving, for households with different income levels, and for singles as well as married couples. The results are quite invariant to these circumstances.

Sign in / Sign up

Export Citation Format

Share Document