Robert L. Clark|Jennifer A. Maki|Melinda Sandler Morrill
Can Simple Informational Nudges Increase Employee Participation in a 401(k) Plan?
North Carolina State University|North Carolina State University
report results field experiment randomized subset newly hired workers large financial institution received flyer containing information employers 401k plan value contributions compounding career younger workers received flyer significantly likely begin contributing plan relative peers control group many workers participate employers supplemental retirement savings programs even though programs offer substantial tax advantages immediate returns due matching contributions survey new hires find many workers choose contribute plan financial priorities however nonparticipants lack financial literacy appreciate benefit findings indicate simple informational interventions nudge workers participate retirement saving plans enhance individual wellbeing retirement income security