EMPLOYEE FINANCIAL LITERACY AND RETIREMENT PLAN BEHAVIOR: A CASE STUDY.
This article uses administrative data on all active employees of the Federal Reserve (FR) System to examine participation in and contributions to the Thrift Saving Plan, the System's defined contribution (DC) plan. We link to administrative records a unique employee survey of economic/demographic fa...
| Publicado en: | Economic Inquiry Vol. 55; no. 1; pp. 248 - 260 |
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| Autores principales: | , , |
| Formato: | Artículo |
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Wiley-Blackwell
Jan2017
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=119533455&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 119533455 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jan2017 vid: 55 iid: 1 pid: 480 pub: Wiley-Blackwell artinfo: ui: 119533455 10.1111/ecin.12389 ppf: 248 ppct: 12 formats: fmt: – @attributes: type: T – @attributes: type: P size: 151KB tig: atl: EMPLOYEE FINANCIAL LITERACY AND RETIREMENT PLAN BEHAVIOR: A CASE STUDY. aug: au: Clark, Robert Lusardi, Annamaria Mitchell, Olivia S. affil: Professor, Department of Economics and Department of Management, Innovation, and Entrepreneurship, North Carolina State University, Raleigh NC 27695 Professor, Department of Accountancy, The George Washington University School of Business, Washington DC 20052 Professor, Department of Business Economics/Policy, Wharton School University of Pennsylvania, Philadelphia PA 19104 su: Savings Financial literacy Federal Reserve Board members Defined contribution pension plans Employee attitude surveys sug: subj: Savings Public Finance Activities Financial literacy Federal Reserve Board members Defined contribution pension plans Employee attitude surveys ab: This article uses administrative data on all active employees of the Federal Reserve (FR) System to examine participation in and contributions to the Thrift Saving Plan, the System's defined contribution (DC) plan. We link to administrative records a unique employee survey of economic/demographic factors including a set of financial literacy questions. Not surprisingly, FR employees are substantially more financially literate than the population at large. Most importantly, financially savvy employees are also most likely to participate in their DC plan. Sophisticated workers contribute three percentage points more of their earnings to the DC plan than do the less knowledgeable, and they hold more equity in their pension accounts. We examine changes in employee plan behavior 1 year after employees completed a Learning Module about retirement planning, and we compare it to baseline patterns. We find that those employees who completed the Learning Module were more likely to start contributing and less likely to have stopped contributing to the DC plan postsurvey. In sum, employer-provided learning programs are shown to significantly impact employee retirement saving decisions and consistent with a lot of other research, higher levels of financial literacy are found to have a beneficial impact on retirement saving patterns. ( JEL J3, H7) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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