EconPapers    
Economics at your fingertips  
 

Imperfect Knowledge, Retirement and Saving

Alan Gustman () and Thomas L. Steinmeier
Additional contact information
Thomas L. Steinmeier: Texas Tech University

Working Papers from University of Michigan, Michigan Retirement Research Center

Abstract: Using data from the Health and Retirement Study, this paper measures knowledge about future social security and pension benefits by comparing respondent reports of their expected benefits with benefits calculated from social security earnings records and employer provided descriptions of pension plans. The knowledge measures suggest that misinformation or lack of information about retirement benefits is the norm. Those who are most dependent on social security are the least well informed, while the opposite is true for pensions. Women and minorities are also less well informed about their retirement benefits. Those who engage in planning activities are somewhat better informed than those who do not, but with the exception of having requested a social security earnings record, the effects of planning activities on knowledge are modest. In descriptive and reduced form equations for planned and actual retirement saving, there is at best a modest relation of knowledge measures to planned and actual retirement and to nonpension, nonsocial security wealth as a share of lifetime earnings. Individuals who over estimate their benefits are likely to retire sooner than they planned, but the measured effects are again relatively modest.

Date: 2001-06
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (22) Track citations by RSS feed

Downloads: (external link)
http://www.mrrc.isr.umich.edu/publications/Papers/pdf/wp012.pdf (application/pdf)

Related works:
Working Paper: Imperfect Knowledge, Retirement and Saving (2001) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mrr:papers:wp012

Access Statistics for this paper

More papers in Working Papers from University of Michigan, Michigan Retirement Research Center P.O. Box 1248, Ann Arbor, MI 48104. Contact information at EDIRC.
Series data maintained by MRRC Administrator ().

 
Page updated 2017-10-25
Handle: RePEc:mrr:papers:wp012