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shifted towards defined contribution (DC) plans as their primary savings plan, and fiscal pressures are likely to generate … retirement in other accounts. There is also substantial heterogeneity across jurisdictions in the savings generated in primary DC … employer match. We conclude by applying lessons from savings behavior in private sector savings plans to the design of public …
Persistent link: https://www.econbiz.de/10013130979
expenditure. We find support for these predictions in three field experiments that randomly assign reminders to new savings …
Persistent link: https://www.econbiz.de/10013139968
Default contribution rates for 401(k) pension plans powerfully influence workers' choices. Potential causes include opt-out costs, procrastination, inattention, and psychological anchoring. We examine the welfare implications of defaults under each of these theories. We show how the optimal...
Persistent link: https://www.econbiz.de/10013118423
, simplification, planning aids, reminders, and commitment features--potentially have a much greater impact on savings outcomes than do …Including a matching contribution increases savings plan participation and contributions, although the impact is less … on savings plan contributions. In contrast, the match threshold has a substantial impact, probably because it serves as a …
Persistent link: https://www.econbiz.de/10013103811
Recent findings on limited financial literacy and exponential growth bias suggest saving decisions may not be optimal because such decisions require an accurate understanding of how current contributions can translate into income in retirement. This study uses a large-scale field experiment to...
Persistent link: https://www.econbiz.de/10013108601
Important behavioral factors such as default and framing effects are increasingly being employed to optimize decision-making in a variety of settings, including individually-directed retirement plans. Yet such approaches may have unintended "spillover" effects, as we show with regard to the...
Persistent link: https://www.econbiz.de/10013158535
In this paper we document the importance of framing effects in the retirement savings decisions of college professors … contribution. Employees can also make tax-deferred contributions to a supplemental savings account. A standard lifecycle savings … model predicts a quot;dollar-for-dollarquot; tradeoff between supplemental savings and the combined regular pension …
Persistent link: https://www.econbiz.de/10012776456
Using a financial literacy survey of Swedish pension investors matched to actual retirement savings decisions, we argue … retirement savings more quickly …
Persistent link: https://www.econbiz.de/10012910665
Saving when faced with the immediate option to spend is an unpleasant but not conceptually difficult task. One popular approach contradicts traditional economic theory by suggesting that people in debt should pay off their debts from smallest size to largest regardless of interest rate, to...
Persistent link: https://www.econbiz.de/10013053849
This paper has two goals. First, we discuss several emerging approaches to applied welfare analysis under non-standard ("behavioral") assumptions concerning consumer choice. This provides a foundation for Behavioral Public Economics. Second, we illustrate applications of these approaches by...
Persistent link: https://www.econbiz.de/10013222646