Effects of public policies on the disposition of lump-sum distributionsRational and behavioral influences

Effects of public policies on the disposition of lump-sum distributionsRational and behavioral influences

Effects of public policies on the disposition of lump-sum distributions

Rational and behavioral influences

Gale

William G.

Gale, William G.

Author

Author

Dworsky

Michael

Dworsky, Michael

Author

Author

text

working paper

Chestnut Hill, Mass. Center for Retirement Research at Boston College20062006monographic

Chestnut Hill, Mass.

Chestnut Hill, Mass.

Center for Retirement Research at Boston College

2006

2006

monographic

Englisheng

English

eng

electronicapplication/pdfborn digital

electronic

application/pdf

born digital

This paper provides new evidence on how public policies affect individuals' disposition of pre-retirement lump-sum distributions (LSDs) from pensions. The policies, enacted in the 1980s and 1990s, include changes in tax rates, penalties, withholding rules, and default options. Using data from the Health and Retirement Study, we find that each set of policies influence LSD choices independently and through interactions with the other set. The impact of defaults and withholding rules implies that behavioral considerations influence household choices. This in turn creates the possibility that a wide range of policies could be used to change saving behavior.

William G. Gale and Michael Dworsky.

CRR WP2006-15

CRR WP2006-15

CRR WP

2006-15

http://crr.bc.edu/images/stories/Working_Papers/wp_2006-15.pdf

MChBEnglisheng

MChB

Englisheng

English

eng