The Center for Retirement Research at Boston College has released a new Issue in Brief:
“Do Income Projections Affect Retirement Saving?”
by Gopi Shah Goda, Colleen Flaherty Manchester, and Aaron Sojourner
The brief’s key findings are:
- One barrier to saving may be ignorance about how it translates into retirement income.
- A recent study conducted a field experiment to see whether providing workers with retirement income projections affected the amount they saved.
- The results show that such projections, accompanied by information on retirement planning, could modestly increase saving.
- The experiment’s positive effect on saving works, in part, by boosting individuals’ knowledge and confidence.
- But its effect on saving is limited among those with who have difficulty paying bills, prefer to “live for today,” or tend to procrastinate.
The brief is available here.