Working Paper: NBER ID: w12009
Authors: John Beshears; James J. Choi; David Laibson; Brigitte C. Madrian
Abstract: This paper summarizes the empirical evidence on how defaults impact retirement savings outcomes. After outlining the salient features of the various sources of retirement income in the U.S., the paper presents the empirical evidence on how defaults impact retirement savings outcomes at all stages of the savings lifecycle, including savings plan participation, savings rates, asset allocation, and post-retirement savings distributions. The paper then discusses why defaults have such a tremendous impact on savings outcomes. The paper concludes with a discussion of the role of public policy towards retirement saving when defaults matter.
Keywords: Retirement Savings; Defaults; Behavioral Economics
JEL Codes: D0; E21; G23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| automatic enrollment (H55) | participation rates (J22) |
| default contribution rates (J39) | actual contribution rates (J39) |
| endorsement effect (G41) | adherence to defaults (D91) |