Xiao, J. J. (1997). Saving motives and 401(k) contributions.

Xiao, J. J. (1997). Saving motives and 401(k) contributions.

Financial Counseling and Planning, 8(2), 65-73.


Saving Motives And 401(k) Contributions

Jing J. Xiao(1)

This paper investigated worker motives for 401(k) contributions

with data from the 1995 Survey of Consumer Finances. Employer matching

and the ability to withdraw from the plan were related to greater contributions.

In addition, risk tolerance, labor income, and years of working for the

current employer were positively related to contributions.

Key Words: Retirement savings, 401(k) plans, Saving

motive, Survey of Consumer Finances

1. Jing J. Xiao, Associate Professor,

Consumer Affairs Program, College of Human Science and Service, University

of Rhode Island, Kingston, RI 02881. Phone: (401) 874-4036. Fax: (401)

874-2581. E-mail:

I appreciate helpful comments on earlier versions of

this paper from Sherman Hanna, Michael Finke, Martha Starr-McCluer, Jim

Poterba, Celia Hayhoe, Barbara O’Neil, Fred Davis, anonymous reviewers,

and session participants at the 1996 AFCPE conference.


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