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Informing Retirement Savings Decisions: A Field Experiment On Supplemental Plans

Author

Listed:
  • Robert L. Clark
  • Robert G. Hammond
  • Melinda S. Morrill
  • Christelle Khalaf

Abstract

Although supplemental saving plans can be an important part of an individual's financial security in retirement, contribution rates remain low, particularly among those with lower salaries and less education. We report findings from an intervention that provided information on key aspects of the employer‐provided supplemental saving plans to older public employees in North Carolina. Among workers participating in a supplemental plan, individuals who received an informational flyer increased their contributions in the months following the intervention relative to the control group. In contrast, individuals who were not enrolled in a retirement saving plan were not moved to begin contributing to a supplemental plan. The results suggest that informational interventions can induce workers who are already engaged in the saving process to reassess their level of retirement preparedness. (JEL C93, D14, D9)

Suggested Citation

  • Robert L. Clark & Robert G. Hammond & Melinda S. Morrill & Christelle Khalaf, 2019. "Informing Retirement Savings Decisions: A Field Experiment On Supplemental Plans," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 188-205, January.
  • Handle: RePEc:bla:ecinqu:v:57:y:2019:i:1:p:188-205
    DOI: 10.1111/ecin.12731
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    References listed on IDEAS

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    Cited by:

    1. Luisa R. Blanco & O. Kenrik Duru & Carol M. Mangione, 2020. "A Community-Based Randomized Controlled Trial of an Educational Intervention to Promote Retirement Saving Among Hispanics," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 300-315, June.
    2. Maya Haran Rosen & Orly Sade, 2019. "Does Financial Regulation Unintentionally Ignore Less Privileged Populations? The Investigation of a Regulatory Fintech Advancement, Objective and Subjective Financial Literacy," Natural Field Experiments 00662, The Field Experiments Website.

    More about this item

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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