Pension Design and Structure: New Lessons from Behavioral Finance

ISBN : 9780199273393

Olivia S. Mitchell; Stephen P. Utkus
314 ページ
156 x 235 mm mm
Pension Research Council
  • First book to explore the implications of behavioural finance research for pensions and retirement studies
  • Frontier research from several fields: Finance, Economics, Management, Sociology, and Psychology
  • Uses large datasets newly provided by financial service firms
  • Draws out policy implications for financial and pensions consultants, planners, and policy makers.

Employees are increasingly asked to make sophisticated decisions about their pension and healthcare plans. Yet recent research shows that the decisions 'real' people make are often not those of the careful and well-informed economic agent conventionally portrayed in economic research. Rather, decision-makers tend to operate with flawed information and make some of the most critical financial decisions of their lives lacking a full understanding of the options before them and the implications of their decisions.
Pension Design and Structure explores the assumptions behind commonly-held theories of retirement decision-making, in order to draw out the consequences of frontier research in behavioral finance and economics for those interested in better design and structure of retirement pensions. Using large datasets newly provided by financial service firms and real-world experiments, this volume tests the hypotheses of this research.
This is the first book to explore the implications of behavioral finance research for pensions and retirement studies. The authors blend cutting-edge research from several fields including Finance, Economics, Management, Sociology, and Psychology. The book will be of interest to pension plan participants and sponsors, financial service groups responsible for pensions, and retirement system regulators.


Research on Decision-Making Under Uncertainty
1: Lessons From Behavioural Fianance for Retirement Plan Design, Olivia S. Mitchell and Stephen P. Utkus
2: Motivating Retirement Planning: Problems and Solutions, Gary Selnow
3: Who's Afraid of a Poor Old Age? Risk Perception and Risk Management Decisions, Elke Weber
4: Behavioral Portfolios: Hopes for Riches and Protection from Poverty, Meir Statman

Implications for Retirement Plan Design
5: How Much Choice is Too Much? Contributions to 401(k) Retirement Plans, Sheena Sethi-Iyengar, Gur Huberman, and Wei Jiang
6: 'Money Attitudes' and Retirement Plan Design: One Size Does Not Fit All, Donna M. MacFarland, Carolyn D. Marconi, and Stephen P. Utkus
7: Employee Investment Decisions About Company Stock, James J. Choi, David Laibson, Brigitte Madrian, and Andrew Metrick
8: Implications of Information and Social Interactions for Retirement Saving Decisions, Esther Duflo and Emmanuel Saez

Consequences for Retirement Education
9: Saving and the Effectiveness of Financial Education, Annamaria Lusardi
10: Sex Differences, Financial Education, and Retirement Goals, Robert L. Clark, Madeleine B. d'Ambrosio, Ann A. McDermed, and Kshama Sawant
11: The Impact of Advice on Employee Behavior and Retirement Prospects, Jason Scott and Gregory Stein
12: Adult Learning Principles and Pension Participant Behavior, Victor Saliterman and Barry G. Sheckley

Implications for Retirement Payouts
13: How Do Retirees Go From Stock to Flow?, John Ameriks
14: Annuities and Retirement Satisfaction, Constantijn W. A. Panis
15: Perceptions of Mortality Risk: Implications for Annuities, Matthew Drinkwater and Eric T. Sondergeld


Olivia S. Mitchell, Executive Director of the Pension Research Council, Wharton School, University of Pennsylvania
Stephen P. Utkus, Director of the Vanguard Center for Retirement Research, The Vanguard Group
John Ameriks, Senior Research Fellow, TIAA-CREF Institute
James J. Choi, Harvard University
Robert L. Clark, Professor of Business Management and Economics, North Carolina State University
Madeleine B. d'Ambrosio, Vice President of TIAA-CREF and Executive Director of the TIAA-CREF Institute
Matthew Drinkwater, Assistant Scientist, Retirement Research Unit, LIMRA International
Esther Duflo, Castel Krob Career Development Associate Professor of Development Economics, MIT
Gur Huberman, Professor, Graduate School of Business, Columbia University
Wei Jiang, Assistant Professor of Finance, Columbia Business School
David Laibson, Professor of Economics, Harvard University
Annamaria Lusardi, Associate Professor of Economics, Dartmouth College
Donna M. MacFarland, Senior Manager of the Institutional Marketing Research Department, Vanguard
Brigitte Madrian, Associate Professor, Wharton School, University of Pennsylvania
Carolyn D. Marconi, Principal, Marketing Research Group, Vanguard
Ann A. McDermed, formerly of the College of Management, North Carolina State University
Andrew Metrick, Associate Professor of Finance, Wharton School, University of Pennsylvania
Olivia S. Mitchell, Executive Director of the Pension Research Council, Wharton School, University of Pennsylvania ,
Constantijn W. A. Panis, Senior Economist, RAND
Emmanuel Saez, Assistant Professor of Economics, University of California-Berkeley
Victor Saliterman, Senior Vice President, CIGNA Retirement & Investment Services, and President of CIGNA Financial Services
Kshama Sawant, North Carolina State University
Jason Scott, Director of Financial Research, Financial Engines
Gary Selnow, Professor of Communication, San Fransisco State University, and Director of the World Internet Resources for Education and Development
Sheena Sethi-Iyengar, Associate Professor of Management, Columbia Business School
Barry G. Sheckley, Neag Professor of Adult Learning, Department of Educational Leadership, University of Connecticut
Eric T. Sondergeld, Corporate Vice President and Director of Retirement Research, LIMRA
Meir Statman, Glenn Klimek Professor of Finance, Santa Clara University
Gregory Stein, Financial Development Group, Financial Engines
Stephen P. Utkus, Director, Vanguard Center for Retirement Research
Elke Weber, Professor of Management and Psychology, Columbia University, and Academic Director, Chazen Institute for International Business, Columbia Business School

"Overall, the book is of a very high standard...This is certainly a book I will appreciate owning and sharing with colleagues." - PEF

"In a very readable way, the authors overview the whole field and offer concise conclusions for pension plan design...Overall, the book is of a very high academic standard, as one would anticipate from this series." - The Journal of Pension Economics and Finance