Nudging Retirement Savings: A Field Experiment on Supplemental Plans

52 Pages Posted: 21 Aug 2017

See all articles by Robert L. Clark

Robert L. Clark

North Carolina State University - Poole College of Management

Robert G. Hammond

North Carolina State University

Melinda Sandler Morrill

North Carolina State University - Department of Economics

Christelle Khalaf

Ohio University-Voinovich School of Leadership and Public Affairs; North Carolina State University

Date Written: August 2017

Abstract

Although supplemental saving plans can be an important part of an individual's financial security in retirement, contribution rates remain low, particularly among those with lower salaries and less education. We report findings from a field experiment that distributed an informational nudge containing information on key aspects of the employer-provided supplemental saving plans of older public employees in North Carolina. Among workers participating in a supplemental plan, individuals who received an informational nudge increased their contributions in the months following the intervention relative to the control group. Moreover, those that received the nudge reported in a subsequent survey that they were more likely to have developed a retirement plan and report more confidence in their retirement preparedness. In contrast, individuals who were not enrolled in a retirement saving plan were not moved to begin contributing to a supplemental plan.

Suggested Citation

Clark, Robert L. and Hammond, Robert G. and Morrill, Melinda Sandler and Khalaf, Christelle, Nudging Retirement Savings: A Field Experiment on Supplemental Plans (August 2017). NBER Working Paper No. w23679. Available at SSRN: https://ssrn.com/abstract=3023054

Robert L. Clark (Contact Author)

North Carolina State University - Poole College of Management ( email )

Hillsborough Street
Raleigh, NC 27695-8614
United States
919-515-5560 (Phone)
919-515-5564 (Fax)

Robert G. Hammond

North Carolina State University ( email )

Raleigh, NC 27695-8110
United States

HOME PAGE: http://www4.ncsu.edu/~rghammon/

Melinda Sandler Morrill

North Carolina State University - Department of Economics ( email )

Raleigh, NC 27695-8110
United States
9195150331 (Phone)

HOME PAGE: http://www4.ncsu.edu/~msmorril

Christelle Khalaf

Ohio University-Voinovich School of Leadership and Public Affairs ( email )

Athens, OH 45701-2979
United States

North Carolina State University

Hillsborough Street
Raleigh, NC 27695
United States

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