Abstract

http://ssrn.com/abstract=999420
 
 

References (48)



 
 

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Choice Architecture and Retirement Saving Plans


Shlomo Benartzi


University of California at Los Angeles

Ehud Peleg


University of California, Los Angeles (UCLA) - Anderson School of Management

Richard H. Thaler


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

July 2007


Abstract:     
In this paper, we apply basic principles from the domain of design and architecture to choices made by employees saving for retirement. Three of the basic principles of design we apply are: (1) there is no neutral design, (2) design does matter, and (3) many of the seemingly minor design elements could matter as well. Applying these principles to the domain of retirement savings, we show that the design of retirement saving vehicles has a large effect on saving rates and investment elections, and that some of the minor details involved in the architecture of retirement plans could have dramatic effects on savings behavior. We conclude our paper by discussing how lessons learned from the design of objects could be applied to help people make better decisions, which we refer to as 'choice architecture.'

Number of Pages in PDF File: 52

Keywords: Retirement saving plans, Investment decisions, Life-cycle

JEL Classification: D91, G11, H55, J32

working papers series


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Date posted: July 11, 2007 ; Last revised: February 21, 2011

Suggested Citation

Benartzi, Shlomo and Peleg, Ehud and Thaler, Richard H., Choice Architecture and Retirement Saving Plans (July 2007). Available at SSRN: http://ssrn.com/abstract=999420 or http://dx.doi.org/10.2139/ssrn.999420

Contact Information

Shlomo Benartzi
University of California at Los Angeles ( email )
D410 Anderson Complex
Los Angeles, CA 90095-1481
United States
310-206-9939 (Phone)
310-267-2193 (Fax)
Ehud Peleg (Contact Author)
University of California, Los Angeles (UCLA) - Anderson School of Management ( email )
110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
Richard H. Thaler
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-5208 (Phone)
773-702-0458 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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