Save More Tomorrow¶
Thaler, R. H., & Benartzi, S. (2004). Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving. Journal of Political Economy.
Cited by¶
2 citations across 2 artifacts.
Each citation links to the sentence it supports in the citing article.
Primes¶
- Commitment Device
- Thaler and Benartzi (2004) exploited exactly this collapse in their "Save More Tomorrow" program, in which employees commit in advance to allocating future salary raises to retirement savings; because the costly decision is made once, and at a moment when the future raise feels abstract rather than tempting, participation and savings rates rose dramatically without any further act of self-control.
This sourceThe SMarT program, in which employees commit in advance to allocating future salary raises to retirement savings, raised average saving rates from 3.5% to 13.6% over 40 months without further in-the-moment self-control; supports the manages-complexity claim about relocating the costly decision to a low-temptation moment.
- Thaler and Benartzi (2004) exploited exactly this collapse in their "Save More Tomorrow" program, in which employees commit in advance to allocating future salary raises to retirement savings; because the costly decision is made once, and at a moment when the future raise feels abstract rather than tempting, participation and savings rates rose dramatically without any further act of self-control.
- Time Preference (Discounting Future)
- | Domain | Manifestation | |------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Retirement & Savings | 401(k) auto-enrollment, Save More Tomorrow, default-investment-option design, IRA contribution-matching, retirement-adequacy analysis.
This sourceThe SMarT program in which employees commit in advance to allocating future salary raises to retirement savings, raising participation and saving rates without further in-the-moment self-control.
- | Domain | Manifestation | |------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Retirement & Savings | 401(k) auto-enrollment, Save More Tomorrow, default-investment-option design, IRA contribution-matching, retirement-adequacy analysis.
Verification¶
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