The choice to cash out pension rights at job change or retirement

• 成果类型: Article
• 署名作者: Hurd, Michael; Panis, Constantijn
• 署名单位: Deloitte Touche Tohmatsu Limited; RAND Corporation
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2006.06.007
• 发表日期: 2006
• 页码: 2213-2227
• 关键词: Pension; lump sum; cash-out; annuity

摘要

Most pension plans allow a lump sum distribution upon job separation, enabling a subsequent cash-out. in the 1992-2000 HRS, 13% of entitlements were cashed-out, representing 5.3% of entitlement dollars. Among plans with a lump sum option, 20% were cashed out. Cash-outs can be rational and we broadly confirm hypotheses for cash-out determinants, but not that individuals with short expected longevity should wish to disproportionately cash out. Fears of adverse selection into the pool of pensioners with annuity income thus appear unfounded. While we find only limited leakage, it is concentrated among individuals vulnerable to poverty in old age. (c) 2006 Elsevier B.V. All rights reserved.