Digitalization and Retirement Contribution Behavior: Evidence from Administrative Data

77 Pages Posted: 23 Feb 2021 Last revised: 14 Jul 2022

See all articles by Claudio Daminato

Claudio Daminato

Lund University; ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich

Massimo Filippini

ETH Zürich; University of Lugano - Faculty of Economics

Fabio Haufler

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich

Date Written: June 30, 2022

Abstract

Although digitalization promises to help individuals plan adequately for their retirement, no evidence has been provided yet on its actual impacts. Using Swiss administrative pension fund data, we document limited take-up of financial incentives for retirement contributions. Exploiting the staggered roll-out of a digital pension application across occupational pension funds over time, we show its introduction has large effects on tax-favored retirement contributions. We then leverage a field experiment to show that using the digital pension app affects retirement contribution behavior mainly through reducing the "hassle" costs of making contributions, rather than providing information on associated tax savings.

Keywords: Digitalization, Pension app, Occupational pensions, Financial incentives, Retirement contributions

JEL Classification: C93, D14, D83, G51

Suggested Citation

Daminato, Claudio and Filippini, Massimo and Haufler, Fabio, Digitalization and Retirement Contribution Behavior: Evidence from Administrative Data (June 30, 2022). Available at SSRN: https://ssrn.com/abstract=3740607 or http://dx.doi.org/10.2139/ssrn.3740607

Claudio Daminato

Lund University ( email )

Box 117
Lund, SC Skane S221 00
Sweden

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland

Massimo Filippini

ETH Zürich ( email )

ETH-Zentrum
CH-8092 Zurich
Switzerland

University of Lugano - Faculty of Economics ( email )

Via Giuseppe Buffi 13
CH-6900 Lugano, CH-6904
Switzerland

Fabio Haufler (Contact Author)

ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich ( email )

Zürichbergstrasse 18
Zurich, 8092
Switzerland

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