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...

A defined contribution pension plan allows consumption to be redistributed from the plan member's working life to retirement in a manner that is consistent with the member's personal preferences. The plan's optimal funding and investment strategies therefore depend on the desired profile of...