Julie Agnew|Lisa R. Szykman|Stephen P. Utkus|Jean A. Young
Literacy, Trust and 401(K) Savings Behavior
William & Mary|California University of Pennsylvania|Georgetown University|Vanguard University
three large firms offering 401k plans assess impact financial literacy trust 401k savings behavior voluntary automatic enrollment 401k plans financial literacy plays critical role improving 401k savings behavior reduces proportion nonjoiners voluntary 401k plans proportion quitters automatic enrollment plans trust critical well improving quit rates automatic enrollment plans financial literacy trust appear sizeable marginal effects income also find initial evidence nonparticipants lowincome rational agents fail participate 401k plan due anticipated income support social security findings underscore importance ongoing workplace education voluntary automatic enrollment plans highlight unique issue trust automatic enrollment plans