Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/288084 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Risk and Insurance [ISSN:] 1539-6975 [Volume:] 90 [Issue:] 3 [Publisher:] Wiley [Place:] Hoboken, NJ [Year:] 2023 [Pages:] 633-666
Publisher: 
Wiley, Hoboken, NJ
Abstract: 
Ignoring the effects of inflation in retirement planning can have severe consequences for an individual's future financial well‐being. Yet, many pension funds do not communicate inflation‐related information, presumably for the fear of reduced contributions once the members understand how low the “real” return on saving for retirement is. As an alternative prediction, the provision of inflation information could increase pension contributions, because it reveals possible pension shortfalls. In cooperation with a major German pension fund, we conduct a field experiment, in which we vary the inflation information provided to the fund members, to explore this important issue. Among all participants, we find mostly positive but insignificant effects of the inflation information on pension contributions. Among those participants who voluntarily changed their pension contributions after the experimental intervention, the provision of inflation information significantly raises the likelihood of increasing pension contributions.
Subjects: 
field experiment
household savings
inflation
money illusion
pension contributions
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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