Trends in Pension Cash-out at Job Separation and the Effects on Long-term Outcomes

This document is about analyzing the trends in pension cash-outs among older workers in the United States, including cohort differences and the long-term consequences of pension cash-outs. It uses longitudinal data from the Health and Retirement Study to examine factors that lead to cash-outs, such as economic and health shocks, and how these cash-outs impact future wealth, income, and well-being. The researchers find that pension cash-outs have become more common, especially among workers affected by the Great Recession, but that the worse outcomes for those who cash out are more a result of the shocks they experience rather than the cash-out itself.