Nudge: An Application in Retirement Planning
13 Pages Posted: 7 Nov 2010
Date Written: March 25, 2010
This paper reviews principles of behavioral finance as applicable to retirement withdrawal planning, discusses common retirement planning problems, reviews relevant law, and proposes an application of Thaler and Sunstein’s NUDGE (2008). The paper includes a proposal for modification of federal retirement plan law to encourage behavior which will lead to reduced risk of ruin for retirees and concludes with the implications for retirees, the federal government, and financial institutions.
Keywords: Retirement Planning, Behavioral Finance, NUDGE
JEL Classification: D1, G28, J26
Suggested Citation: Suggested Citation