کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
883589 | 1471668 | 2013 | 16 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Simplification and saving Simplification and saving](/preview/png/883589.png)
The daunting complexity of important financial decisions can lead to procrastination. We evaluate a low-cost intervention that substantially simplifies the retirement savings plan participation decision. Individuals received an opportunity to enroll in a retirement savings plan at a pre-selected contribution rate and asset allocation, allowing them to collapse a multidimensional problem into a binary choice between the status quo and the pre-selected alternative. The intervention increases plan enrollment rates by 10–20 percentage points. We find that a similar intervention can be used to increase contribution rates among employees who are already participating in a savings plan.
► Two companies simplified the retirement savings plan participation decision.
► Workers could join the plan at a pre-selected contribution rate and asset allocation.
► The simplification increased plan enrollment rates by 10–20 percentage points.
► A similar intervention increased contribution rates of low savers already in the plan.
Journal: Journal of Economic Behavior & Organization - Volume 95, November 2013, Pages 130–145