Documento de trabajo
Limited Understanding of Individual Retirement Accounts among Chileans
Fecha
2009Registro en:
Series Documentos de Trabajo, No. 296 Julio, 2009
Autor
Martínez Alvear, Claudia
Sahm, Claudia
Institución
Resumen
Chileans with more knowledge about the pension system more actively contribute to
and manage their individual retirement accounts. This positive association between
system knowledge and retirement saving remains even after controlling for di§erences
in other relevant attributes, such as Önancial planning horizon, retirement
plan, and risk preference. Furthermore, the members who have the most discretion
with their accounts, such as the self-employed, are often the least knowledgeable
about the pension system. In general, Chileans report a limited understanding of
their retirement account system, and this lack of knowledge appears to impede active
decision-making in the system.