IX. Findings
S. defined contribution plans. DC retirement levels representing an expanding small fraction of us home wealth are now being employed by professionals so you’re able to one another financing dated-age old age cover, and also to assist cover newest consumption needs. The master plan financing element is among the prominent yet understudied pre-retirement exchangeability top features of 401(k) plans.
So it paper have explored the effects out-of workplace plan mortgage policy, and now we ending a loan build normally and you can has a keen economically significant effect on fellow member credit. Inside our dataset, one-5th off plan players had a loan at a time, if you are almost 40 per cent performed therefore more than an effective five-seasons months. Professionals whom borrowed more was in fact together with probably be young and you can liquidity-limited, in line with an excellent lifecycle model of protecting and you may borrowing from the bank.