How has shift to defined contribution plans affected saving?

Munnell, Alicia Haydock, Jean-Pierre Aubry, and Caroline Crawford. “How has shift to defined contribution plans affected saving?”. Issue in Brief 15-16, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, September 2015. http://hdl.handle.net/2345/bc-ir:104753.
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Abstract

The brief's key findings are: (1) Many believe that people are saving less for retirement due to the shift from defined benefit (DB) to defined contribution (DC) plans. (2) The analysis uses National Income and Product Accounts data, with adjustments, to compare DB benefit accruals with DC contributions from 1984-2012. (3) The results show that the percentage of total salaries going to retirement saving has declined slightly during this period. (4) But if returns on asset accumulations are included, the annual change in pension wealth is relatively steady, so the shift to DC plans has not led to less total saving. (5) What has changed is that individuals, rather than plan sponsors, now bear all of the risk.

Title
How has shift to defined contribution plans affected saving?
Author
Munnell, Alicia Haydock
Aubry, Jean-Pierre
Crawford, Caroline
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
September 2015
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
15-16
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104753
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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