Retirement Guarantees in Voluntary Defined Contribution Plans

Olivia S. Mitchell and Kent Smetters

in The Pension Challenge

Published in print November 2003 | ISBN: 9780199266913
Published online August 2004 | e-ISBN: 9780191601323 | DOI:
 Retirement Guarantees in Voluntary Defined Contribution Plans

Show Summary Details


This chapter examines the rate of return guarantee options in defined contribution (DC) plans. Guarantees in DC plans offer fixed nominal rates of return over a calendar year. Rate of return guarantees have few behavioural effects on workers, since participants do not determine investments in their pension accounts. The guarantee could affect the extent to which workers assume risk in their nonpension investments, since it makes their investments in their DC plan relatively low risk.

Keywords: rate of return guarantees; voluntary defined contribution plans; pension plans; retirement plans

Chapter.  7084 words. 

Subjects: Financial Markets

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.