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Breaking Barriers in Retirement Planning: Evidence from Colombia’s Dual-Advisory Program

Author

Listed:
  • Becerra Camargo, Oscar Reinaldo

    (Universidad de los Andes)

  • Cavallo, Eduardo

    (Inter-American Development Bank)

  • Guzmán Gutiérrez, Carlos Santiago

    (University of Oxford)

Abstract

This paper investigates the impact of behavioral frictions and information provision on retirement planning through the Dual Advisory program in Colombia. The program gradually became mandatory to prevent costly mistakes and offered personalized information on switching pension plans. Using a regression discontinuity design and administrative data, we estimate the causal effects of the program on switching behavior and contribution patterns. The findings indicate that the program reduced unfavorable switches by approximately 29.5%, due to a combination of deterring would-be switchers for whom the switch would have resulted in lower expected pension (22.7%) and the information received by those who attended the sessions (6.7%). However, the program also deterred favorable switches by 10.7%. There is no evidence of the program affecting contribution frequency post-intervention.

Suggested Citation

  • Becerra Camargo, Oscar Reinaldo & Cavallo, Eduardo & Guzmán Gutiérrez, Carlos Santiago, 2025. "Breaking Barriers in Retirement Planning: Evidence from Colombia’s Dual-Advisory Program," Documentos CEDE 21365, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:021365
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    More about this item

    Keywords

    Information provision; retirement planning; pensions; switching cost; inertia.;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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