Pre-retirement lump-sum pension distributions and retirement income security: Evidence from the health and retirement study

Research output: Contribution to journalArticle

17 Scopus citations

Abstract

This paper uses the Health and Retirement Study to examine the extent of retirement wealth erosion from pre-retirement lump-sum pension distributions. There is little evidence that spent distributions have resulted in significant pension leakage. If spent distributions had been rolled over into a tax-qualified plan, they would have represented 5-11 percent of pension and Social Security wealth for the median household that spent a distribution. However, one-quarter of the households that spent distributions -which is 2.25 percent of all households age 51 to 61 - could have increased retirement wealth by 25 percent or more had the distributions been rolled over.

Original languageEnglish (US)
Pages (from-to)665-684
Number of pages20
JournalNational Tax Journal
Volume55
Issue number4
DOIs
StatePublished - Dec 2002

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

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