Are retirement planning tools substitutes or complements to financial capability?

Arbeitspapier

We conduct a randomized controlled trial to understand how a web-based retirement saving calculator affects workers' retirement-savings decisions. In both conditions, the calculator projects workers' retirement income goals. In the treatment condition, it also projects retirement income based on definedcontribution savings, prominently displays the gap between projected goal and actual retirement income, and allows users to interactively explore how alternative, future contribution choices would affect the gap. The treatment increased average annual retirement contributions by $174 (2.3 percent). However, effects were larger for those with greater financial knowledge, suggesting this type of tool complements, rather than substitutes for, underlying financial capability.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Upjohn Institute Working Paper ; No. 22-378

Classification and Topics

• Classification: Wirtschaft ; Household Saving; Personal Finance ; Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
• Subject: retirement planning ; retirement saving ; exponential-growth bias ; present bias ; financial literacy ; financial capability

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Goda, Gopi Shah ; Levy, Matthew ; Flaherty Manchester, Colleen N. ; Sojourner, Aaron ; Tasoff, Joshua
• Event: Veröffentlichung
• (who): W.E. Upjohn Institute for Employment Research
• (where): Kalamazoo, MI
• (when): 2022

Further information

• DOI: doi:10.17848/wp22-378
• Handle: http://hdl.handle.net/10419/283973
• Last update: 10.03.2025, 11:44 AM CET