On track for retirement?
Journal of Economic Behavior & Organization, 2021, vol. 190, issue C, 76-88
Over sixty percent of employees at a large South African company contribute the minimum rate of 7.5% to a retirement fund—far below the rate of 15% recommended by financial advisers. I use a field experiment to investigate whether providing employees with a retirement calculator, which shows projections of retirement income, leads to increases in contributions. The impact is negligible. The lack of response to the calculator suggests many employees may wish to save less than the minimum. I use a model of asymmetric information to explain why the employer sets a binding minimum.
Keywords: Retirement saving; Financial literacy; Defined contribution plans (search for similar items in EconPapers)
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Working Paper: On Track for Retirement? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:190:y:2021:i:c:p:76-88
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Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.
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