Active Pension Participation and Active Pension Participation and Household Wealth Accumulation: Household Wealth Accumulation: Evidence of Learning by DoingEvidence of Learning by Doing

by: Jason S. Seligman & Rana Boseby: Jason S. Seligman & Rana Bose

Discussant: Cassandra R. ColeDiscussant: Cassandra R. Cole

Florida State UniversityFlorida State University

ARIA 2007ARIA 2007

Research QuestionResearch Question

Using data from the HRS, the study Using data from the HRS, the study examines the relation between pension examines the relation between pension plan options and financial education on the plan options and financial education on the ownership of particular asset types.ownership of particular asset types.

ResultsResults

The presence of various types of The presence of various types of retirement savings impact the type of retirement savings impact the type of assets held.assets held.

Financial education does impact the type Financial education does impact the type of assets held.of assets held.

Whether the individual has control over Whether the individual has control over DC investments has no impact on the type DC investments has no impact on the type of assets held.of assets held.

Items to ConsiderItems to Consider

Alternate categorization of assetsAlternate categorization of assets

Statistics on change in percentage of Statistics on change in percentage of assets in each category/what happens if assets in each category/what happens if you look at intensive marginyou look at intensive margin

Additional analysis of diversification/how to Additional analysis of diversification/how to handle those without any assets in any of handle those without any assets in any of the categoriesthe categories