What you don't know can't help you: Pension knowledge and retirement decision-making

Sewin Chan, Ann Huff Stevens

Research output: Contribution to journalReview article

Abstract

This paper provides an answer to an important empirical puzzle in the retirement literature: while most people know little about their own pension plans, retirement behavior is strongly affected by pension incentives. We combine administrative and self-reported pension data to measure the retirement response to actual and perceived financial incentives and document an important role for self-reported pension data in determining retirement behavior. Well-informed individuals are far more responsive to pension incentives than the average individual. Ill-informed individuals seem to respond systematically to their own misperceptions of pension incentives.

Original languageEnglish (US)
Pages (from-to)253-266
Number of pages14
JournalReview of Economics and Statistics
Volume90
Issue number2
DOIs
StatePublished - May 2008

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Economics and Econometrics

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