Simplification and Saving
MetadataShow full item record
CitationBeshears, John, James J. Choi, David I. Laibson, and Brigitte C. Madrian. Forthcoming. Simplification and saving. Journal of Economic Behavior and Organization.
AbstractThe 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.
Citable link to this pagehttp://nrs.harvard.edu/urn-3:HUL.InstRepos:9925399
- FAS Scholarly Articles