The Effects of Nudging on Pension Savings Decisions

mandag, 30 november 2020

Choice is a vital element in the design of a pension system. This study shows that there is considerable appetite for having options in the accumulation phase.

However, people with little retirement savings choose to temporarily suspend their contributions just as often as those with considerable savings. Any choices ultimately offered should therefore be designed responsibly. Even in an online environment requiring little effort to change choices, people tend to choose the first option shown or the prefilled one (default).