The Importance of Default Options for Retirement Savings Outcomes: Evidence from the United States
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.
- Many workers in the U.S. and around the world have defined contribution retirement savings plans, either through their employers or as part...
in "Lessons from Pension Reform in the Americas," Kay, Stephen J. and Tapen Sinha (eds.) Oxford: Oxford University Press, 2008.
The Importance of Default Options for Retirement Saving Outcomes: Evidence from the United States, John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian. in Social Security Policy in a Changing Environment, Brown, Liebman, and Wise. 2009