An Equilibrium Theory of Retirement Plan Design

2016 ◽  
Author(s):  
Ryan Bubb ◽  
Patrick L. Warren
Keyword(s):  
Equilibrium Theory ◽  
Retirement Plan ◽  
Plan Design

An Equilibrium Theory of Retirement Plan Design

2020 ◽  
Vol 12 (2) ◽  
pp. 22-45 ◽  
Author(s):  
Ryan Bubb ◽  
Patrick L. Warren
Keyword(s):  
Labor Market ◽  
Contract Theory ◽  
Equilibrium Theory ◽  
Theory Approach ◽  
Retirement Plans ◽  
Retirement Plan ◽  
Plan Design

We develop an equilibrium theory of employer-sponsored retirement plan design using a behavioral contract theory approach. The operation of the labor market results in retirement plans that generally cater to, rather than correct, workers’ mistakes. Our theory provides new explanations for a range of facts about retirement plan design, including the use of employer matching contributions and the use of default contribution rates in automatic enrollment plans that lower many workers’ savings. We provide novel evidence for our theory from a sample of plans. (JEL D86, G51, J26, J32, J41)

scholarly journals “Money Attitudes” and Retirement Plan Design: One Size Does Not Fit All

2004 ◽  
pp. 97-120 ◽  
Author(s):  
Donna M. MacFarland ◽  
Carolyn D. Marconi ◽  
Stephen P. Utkus
Keyword(s):  
Retirement Plan ◽  
Money Attitudes ◽  
Plan Design
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