Is Information Overrated? Evidence from the Pension Domain
AbstractThis paper presents empirical evidence from the Netherlands indicating that the current policy based on information is unlikely to help people make the pension choices required in a system in which employees are the ultimate bearers of asset market risk. This holds even if information is made easier to understand, disseminated by the relevant media, and provided made to measure. The paper offers a behavioral explanation of the findings and concludes that policy makers, financial supervisors, and the pension industry should adopt alternative instruments for helping employees make good choices. These strategies may be useful in the context of recent proposals for a structural change of the pension system, including the increase in the eligibility age for the first layer pension (AOW).
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 360.
Date of creation: Dec 2012
Date of revision:
Find related papers by JEL classification:
- D1 - Microeconomics - - Household Behavior
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
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