$100 BILLS ON THE SIDEWALK: SUBOPTIMAL INVESTMENT IN 401(K) PLANS

• 成果类型: Article
• 署名作者: Choi, James J.; Laibson, David; Madrian, Brigitte C.
• 署名单位: Yale University; National Bureau of Economic Research; Harvard University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00100
• 发表日期: 2011-08
• 页码: 748-763
• 关键词: company stock; asset location; INFORMATION; incentives; allocation

摘要

We identify employees at seven companies whose 401(k) investment choices are dominated because they are contributing less than the employer matching contribution threshold despite being vested in their match and being able to make penalty-free 401(k) withdrawals for any reason because they are older than 59 1/2. At the average firm, 36% of match-eligible employees over age 59 1/2 forgo arbitrage profits that average 1.6% of their annual pay, or $507. A survey educating employees about the free lunch they are forgoing raised contribution rates by a statistically insignificant 0.67% of income among those completing the survey.