Investment returns

Munnell, Alicia Haydock, Jean-Pierre Aubry, and Caroline V. Crawford. “Investment returns”. Issue in Brief 15-21, Chestnut Hill, Mass.: Center for Retirement Research at Boston College, December 2015. http://hdl.handle.net/2345/bc-ir:104823.
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Abstract

The brief's key findings are: 1) The analysis compares returns by plan type from 1990-2012 using data from the U.S. Department of Labor’s Form 5500. 2) During this period, defined benefit plans outperformed 401(k)s by an average of 0.7 percent per year, even after controlling for plan size and asset allocation. 3) In addition, much of the money accumulated in 401(k)s is eventually rolled over into IRAs, which earn even lower returns. 4) One reason for the lower returns in 401(k)s and IRAs is higher fees, which should be a major concern as they can sharply reduce a saver's nest egg over time.

Title
Investment returns: Defined benefit vs. defined contribution plans
Author
Munnell, Alicia Haydock
Aubry, Jean-Pierre
Crawford, Caroline V.
School
Carroll School of Management
Discipline
Finance
Center
Center for Retirement Research
Genre
report
Date Issued
December 2015
Publisher
Center for Retirement Research at Boston College
Series Title
Issue in Brief
Series Number
15-21
Version Identification
Version of record.
Persistent Link
http://hdl.handle.net/2345/bc-ir:104823
Use Restrictions
These materials are made available for use in research, teaching and private study, pursuant to U.S. Copyright Law. The user must assume full responsibility for any use of the materials, including but not limited to, infringement of copyright and publication rights of reproduced materials. Any materials used for academic research or otherwise should be fully credited with the source. The publisher or original authors may retain copyright to the materials.
Subject
Financing retirement

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