Employee Saving and Investment Decisions in Defined Contribution Pension Plans: Survey Evidence from the UK
29 Pages Posted: 10 Sep 2007
Abstract
This paper uses data from a survey of the members of a UK defined contribution pension plan to explore the attitudes and knowledge of employees faced with pension saving and investment decisions. The results are consistent with behavioural economics in that many employees show limited interest in their pension arrangements. Not all members have received advice about their pension, but those who have are more likely to have calculated their savings needs, to have higher levels of investment knowledge, and to actively review their investments than those who have not. The members' investment preferences appear broadly consistent with traditional finance theory, although the popularity of property may reflect familiarity bias.
Keywords: pensions, defined contribution, behavioural economics, survey data
JEL Classification: D14, G11, G23
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Defined Contribution Pensions: Plan Rules, Participant Decisions, and the Path of Least Resistance
By James J. Choi, David Laibson, ...
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2000
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2001
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 1999
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2002
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2003
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2004
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 2005
By Sarah Holden and Jack Vanderhei
-
401(K) Plan Asset Allocation, Account Balances, and Loan Activity in 1998
By Jack Vanderhei, Sarah Holden, ...
-
401(k) Plan Asset Allocation, Account Balances, and Loan Activity in 2009
By Jack Vanderhei, Sarah Holden, ...