2014
DOI: 10.4284/0038-4038-2012.199
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Can Simple Informational Nudges Increase Employee Participation in a 401(k) Plan?

Abstract: 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 t… Show more

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Cited by 54 publications
(51 citation statements)
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References 34 publications
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“…Moreover, Calcagno and Monticone (2011) argue that non-independent advisors do not offset clients' low levels of financial knowledge, and Collins (2012) concludes that financial advice is a complement to, rather than a substitute for, financial knowledge. Clark et al (2014) report most people (62%) get their investment advice from family and relatives. Kim et al (2013) explore the tradeoff between hiring a financial adviser and investing in on-the-job human capital.…”
Section: Prior Researchmentioning
confidence: 99%
See 1 more Smart Citation
“…Moreover, Calcagno and Monticone (2011) argue that non-independent advisors do not offset clients' low levels of financial knowledge, and Collins (2012) concludes that financial advice is a complement to, rather than a substitute for, financial knowledge. Clark et al (2014) report most people (62%) get their investment advice from family and relatives. Kim et al (2013) explore the tradeoff between hiring a financial adviser and investing in on-the-job human capital.…”
Section: Prior Researchmentioning
confidence: 99%
“…The last two questions were used in surveys fielded in large firms by Clark, Maki and Morrill (2014).…”
Section: Table 1 Herementioning
confidence: 99%
“…Alternatively, older workers may be resistant to changing saving behavior because the framing of policy interventions typically emphasizes compound interest as the key benefit of saving for retirement. This incentive is less important for older workers who have fewer remaining years to build savings (Clark, Maki, and Morrill ). Although compounding is an important benefit of retirement plans, older workers still experience several benefits from savings in employer‐provided retirement plans.…”
Section: Introductionmentioning
confidence: 99%
“…Alternatively, older workers may be resistant to changing saving behavior because the framing of policy interventions typically emphasizes compound interest as the key benefit of saving for retirement. This incentive is less important for older workers who have fewer remaining years to build savings (Clark, et al, 2014). Although compounding is an important benefit of retirement plans, older workers still experience several benefits from savings in employer-provided retirement plans.…”
Section: Introductionmentioning
confidence: 99%