TY - JOUR T1 - Portfolio Risk and Self-Directed Retirement Saving Programmes JF - The Economic Journal Y1 - 2004 A1 - James M. Poterba KW - Net Worth and Assets KW - Pensions AB - Defined contribution retirement plans expose retirement savers to financial market risks. This paper explores the costs of retirement wealth risk. It begins by describing the holding of company stock in 401(k) plans in the US, an investment choice that yields a poorly diversified retirement portfolio. It then summarises the composition of household wealth at retirement and investigates how the degree of diversification in retirement assets affects expected utility. The cost of holding a poorly diversified retirement portfolio is very sensitive to whether or not the retirement saver has other assets that provide a floor for retirement consumption. PB - 114 VL - 114 IS - March U4 - Retirement Wealth/defined contribution pension plans ER -