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 goal. In the treatment condition, it also projects retirement income based on defined-contribution 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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 15758

Klassifikation und Themen

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

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Goda, Gopi Shah ; Levy, Matthew R. ; Flaherty Manchester, Colleen ; Sojourner, Aaron ; Tasoff, Joshua ; Xiao, Jiusi
• Ereignis: Veröffentlichung
• (wer): Institute of Labor Economics (IZA)
• (wo): Bonn
• (wann): 2022

Weitere Informationen

• Handle: http://hdl.handle.net/10419/272385
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ