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Abstract

Investing for retirement generally requires an analysis of and selection from a variety of investment options. This study compares the demographic characteristics of employees that chose to contribute more than the 3 percent employer match rate with those who contributed less than the match. To add power to the test, we eliminated the group that contributed the matched amount. This classification system should identify those employee characteristics that lead to substantial differences in the employee's propensity to invest in a defined contribution retirement plan. The data used in this study was from a civilian component of the Department of Defense as of the end of 2005.

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