Can Simple Informational Nudges Increase Employee Participation in a 401(k) Plan?

We report results from a field experiment in which a randomized subset of newly hired workers at a large financial institution received a flyer containing information about the employer's 401(k) plan and the value of contributions compounding over a career. Younger workers who received the flyer wer...

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Publicado en:Southern Economic Journal Vol. 80; no. 3; pp. 677 - 702
Autores principales: Clark, Robert L., Maki, Jennifer A., Morrill, Melinda Sandler
Formato: Artículo
Publicado: Wiley-Blackwell Jan2014
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Can Simple Informational Nudges Increase Employee Participation in a 401(k) Plan?
      aug:
        au:
          Clark, Robert L.
          Maki, Jennifer A.
          Morrill, Melinda Sandler
        affil:
          Department of Economics, North Carolina State University, Raleigh, NC 27695-8110, USA
          Center for Healthcare Economics and Policy, FTI Consulting, 1101 K Street, NW, Suite B100, Washington DC 20005, USA
      su:
        Retirement
        Young workers
        401(k) plans
        Retirement income
        Discrimination in financial services
      sug:
        subj:
          Retirement
          Young workers
          401(k) plans
          Retirement income
          Discrimination in financial services
      ab: We report results from a field experiment in which a randomized subset of newly hired workers at a large financial institution received a flyer containing information about the employer's 401(k) plan and the value of contributions compounding over a career. Younger workers who received the flyer were significantly more likely to begin contributing to the plan relative to their peers in the control group. Many workers do not participate in their employers' supplemental retirement savings programs, even though these programs offer substantial tax advantages and immediate returns due to matching contributions. From a survey of new hires, we find that many workers choose not to contribute to the plan because they have other financial priorities. However, some nonparticipants lack the financial literacy to appreciate the benefit. These findings indicate that simple informational interventions can nudge workers to participate in retirement saving plans and enhance individual well-being and retirement income security.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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