b'AGING IN THE 21ST CENTURYare associated with slightly lower incomeand Kumar 2007). Comparing HRS participants and less wealth accumulation; agreeable- whose companies offer matching to those who ness is also associated with lower lifedo not shows that matching increases savings on satisfaction.average. Despite matching incentives, however, A similar study finds thatonly 3% of HRS participants whose employers conscientiousness is also associatedoffer matching plans contribute up to the with retirement preparedness (Hurdmaximum allowed. Dushi and Honig (2015) find et al. 2012). Conscientiousness hasthat people are not well-informed about their a large effect on the probability ofemployer-provided DC plans including whether being retirement ready, in the senseor not they are even participating, how much of having a 95% chance of not runningthey may be contributing, and how much they out of savings before death. Conscientioushave in their accounts.Highly conscientious participantshouseholds also appear to spend moreOther research shows that those with lower earned an additional $114,000cautiously during retirement, holding on to theirincomes are the least likely to participate in over their lifetimes and haveretirement savings longer. employer-provided retirement plansnot only because of low take-up rates but because they more positive emotions andEmployer Incentives are also much less likely than higher-income greater life satisfaction. Employer-sponsored DC pension plans areindividuals to work for firms that offer retirement typically voluntary: employees have the optionpension plans (A. Wu et al. 2015).to save a portion of their salary in 401(k)-typeFigure 3-3 demonstrates the shift from DB to Personality investments. However, many workers fail toDC pensions over the past 20 years. In 1992, 19% How much people save for retirement can also betake advantage of this opportunity to save forof HRS participants held DC pensions compared influenced by their personality. Research suggestsretirement. To encourage saving in these plans,to 29% in 2014. DB pension coverage went from that the personality trait of conscientiousness ismany employers offer to match, at some level,23% to 17% over that same time. associated with a range of positive life outcomes.the employee contribution. For example, a 100% Is one of those outcomes saving for retirement?match would mean that for every dollar theThe Retirement-Consumption Conscientious individuals are organized, respon- employee contributes to the plan, the employerPuzzlesible, hardworking, thorough and careful. Takingwill match with one dollar. Some employers capThe life-cycle theory of savings suggests that into account gender, ethnicity, age, years ofthe amount that can be matched and vary inpeople save money during their working lives education, cognitive ability, and other personalitythe extent of matching from a 25% match up toto be able to maintain the same living standard traits, highly conscientious participants earned200%, although the latter is rare (Engelhardtthey had while working. However, early research an additional $114,000 (in 2016 dollars) over their lifetimes and have more positive emotionsPeople are not well-informed about their employer-provided and greater life satisfaction (Duckworth et al. 2012). Husbands and wives who are both consci- defined contribution plans including whether or not they areentious earn $202,945 more. Interestingly, theeven participating, how much they may be contributing,personality traits of openness and agreeablenessand how much they have in their accounts.60'