The choice to cash out pension rights at job change or retirement [An article from: Journal of Public Economics]
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| The choice to cash out pension rights at job change or retirement [An article from: Journal of Public Economics] | |||||||||||||||
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This digital document is a journal article from Journal of Public Economics, published by Elsevier in 2006. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser. Description: 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. |
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