Friday, November 9, 2012
:
9:45 AM
Jefferson (Sheraton Baltimore City Center Hotel)
*Names in bold indicate Presenter
In randomized field experiments, we embedded one- to two-sentence anchoring, goal setting, or savings threshold cues in emails to employees about their 401(k) savings plan. We find that anchors increase or decrease 401(k) contribution rates by up to 1.4% of income. A high savings goal example raises contribution rates by up to 2.2% of income. Highlighting a higher savings threshold in the match incentive structure raises contributions by up to 1.5% of income relative to highlighting the lower threshold. Highlighting the maximum possible contribution rate raises contribution rates by up to 2.9% of income among low savers.
Full Paper:
- Cues 121002.pdf (450.1KB)