A Fistful of Dollars - Financial Incentives, Peer Information and Retirement Savings

Rob Bauer, Inka Eberhardt, Paul Smeets

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

To understand what motivates individuals to look at their pension situation and make adequate savings decisions, we conduct two field experiments with 226,946 and 257,433 pension fund participants. We find peer-information statements do not increase the rate at which individuals check their pension information, but lottery-type financial incentives do. Offering a few large prizes rather than many small prizes is most effective. However, the uptake of pension information does not lead to improved pension knowledge nor to increased self-reported savings three weeks after our intervention.
Original languageEnglish
Article numberhhab088
Number of pages40
JournalReview of Financial Studies
DOIs
Publication statusE-pub ahead of print - 20 Aug 2021

JEL classifications

  • d83 - "Search; Learning; Information and Knowledge; Communication; Belief"
  • c93 - Field Experiments

Keywords

  • BELIEF
  • COMMUNICATION
  • FIELD EXPERIMENTS
  • FINANCIAL LITERACY
  • INFORMATION & KNOWLEDGE
  • INSURANCE
  • LEARNING
  • SEARCH
  • UNAWARENESS
  • G51
  • G53
  • NORMS
  • EDUCATION
  • PLAN
  • DECISIONS
  • SECURITY
  • LITERACY
  • C93
  • D83

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