Study • Finance · Savings
The Power of Suggestion: Inertia in 401(k) Participation and Savings Behavior.
Madrian & Shea (2001), 'The Power of Suggestion
Summary by Mark Egan
This default savings program automatically enrolled employees into a 401(k) plan, finding that the default was incredibly sticky both in terms of how many people did not opt out of it & how many people stuck with the automatic savings rate. The latter issue, potentially problematic if people did not save enough, was later tackled by ‘Save More Tomorrow’.
Tactics used
TACTICS
Smart Defaults
Behaviors addressed
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