The Role of Information on Retirement Planning: Evidence from a Field Study

13 Pages Posted: 31 Aug 2016

See all articles by J. Michael Collins

J. Michael Collins

University of Wisconsin - Madison

Carly Urban

Montana State University - Bozeman - Department of Agricultural Economics and Economics

Date Written: October 2016

Abstract

Many households neglect the pivotal task of planning for retirement. Proposals to stimulate employees to save for retirement in the workplace include tax subsidies, which are costly, and using automatic defaults, which may not complement the heterogeneous preferences of savers. This randomized field study shows that an informationā€based intervention increases reported retirement plan participation, emergency savings, and using a budget. Employees offered access to education increased actual retirement deferrals by $26 per month. These results suggest that retirement education programs may be an effective strategy to increase retirement planning and saving behavior.

JEL Classification: J26, D14, D91

Suggested Citation

Collins, J. Michael and Urban, Carly, The Role of Information on Retirement Planning: Evidence from a Field Study (October 2016). Economic Inquiry, Vol. 54, Issue 4, pp. 1860-1872, 2016. Available at SSRN: https://ssrn.com/abstract=2832479 or http://dx.doi.org/10.1111/ecin.12349

J. Michael Collins (Contact Author)

University of Wisconsin - Madison ( email )

United States
6086160369 (Phone)

Carly Urban

Montana State University - Bozeman - Department of Agricultural Economics and Economics ( email )

Bozeman, MT 59717-2920
United States
4069942005 (Phone)

HOME PAGE: http://www.montana.edu/urban

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