The primary metric for the health of a liability-based plan (LBP) is the ratio of the LBP’s current assets to its present-valued liabilities. This ‘funded ratio’ cannot address some important financial factors, so we suggest three additional metrics of financial health, connected to the probability of fulfilling the plan’s liabilities. The first two metrics compare the current assets and, if desired, projected future contributions to those needed to attain either (1) a specified probability for meeting all the liabilities (SAM, the solvency assets multiple) or (2) specified probabilities for meeting each liability (FAM, the funded assets multiple). The third metric, the risk-free funded ratio (RFFR), uses the STRIPS (Separate Trading of Registered Interest and Principal of Securities) curve to determine the fraction of the liabilities that can be covered without risk. We implement these metrics, first using Monte Carlo simulation given a fixed investment portfolio strategy, and then using dynamic programming to optimize investment portfolio strategies that maximize SAM and FAM.

Both insufficient saving and early withdrawal of retirement savings jeopardize financial well-being in old age, but the latter is rarely studied. We examined which individual differences relate to both regular saving and early withdrawal decisions. These decisions are economically similar (accumulating retirement assets) but psychologically different (incurring regular small losses vs. abstaining from a one-off large gain). We analyzed three representative surveys conducted in Estonia in 2020, 2021, and 2022, surrounding a policy reform that introduced an early withdrawal option to a previously mandatory pension saving scheme. Limited trust in financial institutions and non-Estonian nationality emerged as statistically and economically significant factors associated with the pair of decisions both not to save and to withdraw early. Fostering institutional trust represents a key strategic goal for pension systems. Our findings also call for caution with pension freedom reforms, which may put those who already save too little in double jeopardy.

This paper reports on a 2019 survey of employer perceptions of the productivity, costs, and net value of older workers relative to younger ones, replicating a similar 2006 effort. The key result of the 2019 survey is that older workers have good prospects for extending their careers. Although older workers are seen as costlier, they are also seen as more productive. Overall, the overwhelming majority of employers said older workers were ‘as attractive’ or ‘more attractive’ than younger workers. The main finding from a comparison of the 2019 and 2006 results is an improvement in employer perceptions of support workers.

We evaluated the ICanRetire-Hispanic Segment Experience, which was a culturally tailored digital program to improve retirement preparedness. Using a randomized controlled trial and Complier Average Causal Effect framework, we evaluate the program’s impact among a sample of Hispanic and White workers. We find that our program had robust positive effect on engagement with printed retirement materials for Hispanic participants. Our program had a positive treatment effect on retirement saving among Hispanics aged 50 and older. We do not find differences on the impact of our program among Hispanics with different levels of income, financial literacy, and retirement knowledge.