We study the effect of incorporating heterogeneity into default rules by examining the choice between retirement plans at a firm that transitioned from a defined benefit (DB) to a defined contribution (DC) plan. The default plan for existing employees varied discontinuously depending on their age. Employing regression discontinuity techniques,…

Health plays a vital role in the decision making process of retirement for an employee. The changes in retirement expectations are driven to a much greater degree by change in health rather than change in income or wealth.