Coming Up Short

Alicia H. Munnell is the Peter F. Drucker Professor of Management Sciences at Boston College's Carroll School of Management and director of the Center for Retirement Research at Boston College, Massachusetts, USA. A former member of the president's Council of Economic Advisers, she has written or edited numerous books. Annika Sunden is the a research associate at the Center for Retirement Research at Boston College, USA, and a senior economist at the Swedish National Social Insurance Board.

"Munnell's ideas are based on a simple notion: that some of the burden for decision making has to be lifted from the shoulders of workers. In her book, she proposes a series of defaults, automatic fallbacks that would be applied to 401(k) accounts unless an individual chose to opt out....Munnell would like to see government take a bigger role, a difficult sell in the current political climate. Still, she is convinced some kind of reform is critical." —Charles Stein, Boston Globe, 1/31/2004|"In 'Coming Up Short,' Boston College economists Alicia H. Munnell and Annika Sunden show that so many people have 'goofed up' so much of the time that the shimmering promise of a private, voluntary, 401(k)-based retirement system, which so enticed policymakers and ordinary Americans, is essentially chimera....Munnell and Sunden do not propose to toss over 401(k)s but to improve them. But the bottom line is so at odds with what most people expect that it throws into question all of the attention, affection and support that Americans lavished on stocks in the 1990s. The bottom line, according to the authors, is that the median combined balance of 401(k)s and IRAs for 45- to 54- year-old workers--the first generation that will have to rely almost entirely on these accounts to supplement Social Security--is $37,000, or about an extra $200 a month in retirement benefits." —Peter G. Gosselin, Los Angeles Times, Los Angeles Times, 2/1/2004|"Overall, the book provides an excellent background to a discussion of whether a pension system that relies so heavily upon the 401(k) plan will provide adequate retirement income security in the futture. The literature review is current, wide-ranging and accessible to a wide audience. The discussion of the regulatory environement is sufficient for an understnading of the research covered in the book and a cursory overview is provided in an appendix." —Richard Disney, Professor fo Economics, Universtiy of Nottingham, Journal of Pensions, Economics, and Finance, 7/7/2004|"[The authors] have organized their book around the sequence of decisions Americans must make about 401(k)s--whether to participate, how much to contribute and so forth--and their findings are disconcerting." — Los Angeles Times Book Review|"COMING UP SHORT is a highly practical resource for not only financial service professionals, students and policymakers, but also lay individuals planning their own retirement. Highly recommended." — Wisconsin Bookwatch, 5/1/2005|"The [authors'] reforms offer an ingenious way of guiding choices in pension saving without compulsion." — The Economist|"This valuable volume contains everything you always wanted to know about 401(k) plans, but didn't know enough to ask--written in clear English by two real experts." —Alan Blinder, professor of economics, Princeton University|"Munnell and Sunden nail down the evidence and chart some paths to a retirement system that works. Theirs is an important and absolutely necessary book." —Jane Bryant Quinn, author of MAKING THE MOST OF YOUR MONEY|"Munnell and Sunden ask the right questions and provide sensible, clear answers for helping the average worker build a better retirement." —Beth Kobliner, author, GET A FINANCIAL LIFE