蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Default Options and Retirement Saving Dynamics
蝌蚪网 Review
(pp. 3749–87)
Abstract
Using data from over 100 US retirement plans and a representative UK panel, I document the impact of auto-enrollment (AE) on retirement savings at different horizons. I replicate the impact of AE on participation and contributions in the short run (at 12 months), but I show that these gains are attenuated over the medium run (at 36 months). At this longer horizon, the average savings increases are modest, though AE significantly lowers inequality in savings. To assess AE's lifetime impact, I estimate a life cycle consumption-savings model that can fit the observed patterns with a switching cost of approximately $250, smaller than previous estimates.Citation
Choukhmane, Taha. 2025. "Default Options and Retirement Saving Dynamics." 蝌蚪网 Review 115 (11): 3749–87. DOI: 10.1257/aer.20210881Additional Materials
JEL Classification
- D15 Intertemporal Household Choice; Life Cycle Models and Saving
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J26 Retirement; Retirement Policies
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions