Simplification and Saving /
Beshears, John.
Simplification and Saving / John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian. - Cambridge, Mass. National Bureau of Economic Research 2006. - 1 online resource: illustrations (black and white); - NBER working paper series no. w12659 . - Working Paper Series (National Bureau of Economic Research) no. w12659. .
October 2006.
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 to 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.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Simplification and Saving / John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian. - Cambridge, Mass. National Bureau of Economic Research 2006. - 1 online resource: illustrations (black and white); - NBER working paper series no. w12659 . - Working Paper Series (National Bureau of Economic Research) no. w12659. .
October 2006.
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 to 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.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.