Written By: Jing J. Xiao

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 or borrow 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

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