Working Paper: NBER ID: w23679
Authors: Robert L. Clark; Robert G. Hammond; Melinda Sandler Morrill; Christelle Khalaf
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.
Keywords: Retirement Savings; Field Experiment; Informational Nudges; Public Sector Employees
JEL Codes: J32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Informational nudges (D80) | Increase in contributions to supplemental retirement plans (H55) |
| Informational nudges (D80) | Development of a retirement plan (H55) |
| Informational nudges (D80) | Greater confidence in retirement preparedness (D14) |
| Informational nudges (D80) | No significant effect on nonparticipants' saving behavior (D14) |
| Informational nudges (D80) | Decrease in contributions among some individuals (D64) |