Key Findings Details
How Much Do Respondents in the Health and Retirement Study Know About Their Tax-deferred Contribution Plans? A Crosscohort Comparison
Irena Dushi and Marjorie Honig
- As employer-provided defined benefit pensions are replaced by voluntary contribution plans, it is increasingly important that employees understand the link between their annual contribution decisions and their post-retirement wealth.
- Health and Retirement Study respondents in 2004 were more knowledgeable about whether they were included in defined contribution pension plans than HRS respondents in 1992.
- However, respondents in both years who had defined contribution plans were uncertain about whether they had contributed to their plans during the year.
- Respondents in both years also significantly overestimated their annual contributions.