Tuesday, August 22, 2017

New paper: “Nudging Retirement Savings: A Field Experiment on Supplemental Plans”

Nudging Retirement Savings: A Field Experiment on Supplemental

by Robert L. Clark, Robert G. Hammond, Melinda Sandler Morrill, Christelle Khalaf  -  #23679 (AG)


Although supplemental saving plans can be an important part of an
individual's financial security in retirement, contribution rates
remain low, particularly among those with lower salaries and less
education.  We report findings from a field experiment that
distributed an informational nudge containing information on key
aspects of the employer-provided supplemental saving plans of older
public employees in North Carolina.  Among workers participating in a
supplemental plan, individuals who received an informational nudge
increased their contributions in the months following the
intervention relative to the control group.  Moreover, those that
received the nudge reported in a subsequent survey that they were
more likely to have developed a retirement plan and report more
confidence in their retirement preparedness.  In contrast,
individuals who were not enrolled in a retirement saving plan were
not moved to begin contributing to a supplemental plan.


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