Social Security investment accounts

lessons from participant-directed 401(k) data

Authors

  • Jack L. VanDerhei 1000 Great Springs Road, Rosemont, PA 19010, USA
  • Kelly A. Olsen 500 E Street, 9th Floor, SW, Washington, DC 20036, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00056-1

Abstract

Newly available 401(k) participant investment data may have implications for individual Social Security account (IA) proposals. We found that women with wages between $25,000 and $50,000 have a significantly greater probability of investing a small percentage of their 401(k) in equities than their male counterparts, but those with salaries over $75,000 have a smaller probability. Hence, women’s less aggressive investment behavior may be primarily due to younger cohorts and may not apply above a threshold wage. However, overall, 28.4% of men and 33.8% of women are conservative investors, suggesting the possible risk low IA accumulations under some proposals. © 2000 Elsevier Science Inc. All rights reserved.

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Published

2000-03-30

How to Cite

VanDerhei, J. L., & Olsen, K. A. (2000). Social Security investment accounts: lessons from participant-directed 401(k) data. Financial Services Review, 9(1), 65–78. https://doi.org/10.1016/S1057-0810(00)00056-1

Issue

Vol. 9 No. 1 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 JAI Press Inc.

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