Is Poterba's work on 401(k)s universally positive?
While 401(k) plans have undoubtedly expanded access to retirement saving for many, my work has explored their nuanced impact. We've examined how these plans affect overall household saving and whether they primarily represent a shift of existing savings or genuine new accumulation. Understanding the marginal propensity to save out of 401(k) contributions is crucial. The effectiveness can depend on plan design, employer matching, and participant behavior, which vary significantly.
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