Ning Tang|Olivia S. Mitchell|Gary R. Mottola|Stephen P. Utkus
The efficiency of sponsor and participant portfolio choices in 401(k) plans
University of Pennsylvania|University of Pennsylvania|Vanguard University|Vanguard University
evaluate extent inefficient behavior 401k pensions dominant form retirement saving america attribute inefficiencies separately employers menu design versus participant portfolio elections results analysis 1000 plans million participants demonstrate sponsors offer efficient investment menus participants undo constructing inefficient portfolios thus reducing potential retirement wealth onefifth participants main source inefficient pension investment choices strategies targeting behavior may useful including improved default investment strategies educational programs also show number options offered less important range funds provided designing 401k menus