How will the rise in 401(k) plans affect bequests?

Munnell, Alicia Haydock, Annika Sundén, Mauricio Soto, and Catherine Taylor. “How will the rise in 401(k) plans affect bequests?”. Issue in Brief 10, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, November 2002. http://hdl.handle.net/2345/bc-ir:104513.
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Abstract

This brief explores how the shift from defined benefit to defined contribution pension plans might affect bequests and thereby consumption and saving. Bequests can occur under two different types of circumstances: (1) individuals plan to leave an inheritance for their heirs (an intended bequest); or (2) individuals have no specific inheritance plans, but die before consuming all of their assets (an unintended bequest). This brief concludes that both types of bequests will increase as retirees receive more of their pension benefits as lump-sum amounts rather than as annuity payments, which provide a lifetime stream of income...

Title
How will the rise in 401(k) plans affect bequests?
Author
Munnell, Alicia Haydock
Sundén, Annika
Soto, Mauricio
Taylor, Catherine
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
November 2002
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
10
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104513
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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