Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283973 
Year of Publication: 
2022
Series/Report no.: 
Upjohn Institute Working Paper No. 22-378
Publisher: 
W.E. Upjohn Institute for Employment Research, Kalamazoo, MI
Abstract: 
We conduct a randomized controlled trial to understand how a web-based retirement saving calculator affects workers' retirement-savings decisions. In both conditions, the calculator projects workers' retirement income goals. In the treatment condition, it also projects retirement income based on definedcontribution savings, prominently displays the gap between projected goal and actual retirement income, and allows users to interactively explore how alternative, future contribution choices would affect the gap. The treatment increased average annual retirement contributions by $174 (2.3 percent). However, effects were larger for those with greater financial knowledge, suggesting this type of tool complements, rather than substitutes for, underlying financial capability.
Subjects: 
retirement planning
retirement saving
exponential-growth bias
present bias
financial literacy
financial capability
JEL: 
D14
G53
J32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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