A Fistful of Dollars - Financial Incentives, Peer Information, and Retirement Savings

127 Pages Posted: 24 Aug 2017 Last revised: 26 Feb 2021

See all articles by Rob Bauer

Rob Bauer

Maastricht University

Inka Eberhardt

University of New South Wales (UNSW) - ARC Centre of Excellence in Population Ageing Research (CEPAR); Maastricht University

Paul Smeets

Maastricht University

Date Written: February 25, 2021

Abstract

To understand what motivates individuals to look at their pension situation and take adequate savings decisions, we conduct two field experiments with 226,946 and 257,433 pension fund participants. We find peer-information statements do not increase the rate at which individuals check their pension information, but lottery-type financial incentives do. Offering a few large prizes rather than many small prizes is most effective. However, the uptake of pension information does not lead to improved pension knowledge nor to increased self-reported savings three weeks after our intervention.

Keywords: Retirement Savings, Field Experiment; Financial Incentives; Peer Information

JEL Classification: C93, D83

Suggested Citation

Bauer, Rob and Eberhardt, Inka and Smeets, Paul, A Fistful of Dollars - Financial Incentives, Peer Information, and Retirement Savings (February 25, 2021). Available at SSRN: https://ssrn.com/abstract=3023943 or http://dx.doi.org/10.2139/ssrn.3023943

Rob Bauer

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 3883871 (Phone)

Inka Eberhardt (Contact Author)

University of New South Wales (UNSW) - ARC Centre of Excellence in Population Ageing Research (CEPAR) ( email )

Level 6 (enter via East Lobby)
L5 Building
Sydney, New South Wales NSW 2052
Australia

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

Paul Smeets

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands
+31433883643 (Phone)

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