Study • Finance · Savings
Reducing the Complexity Costs of 401(K) Participation Through Quick Enrollment.
Choi et al (2006), ‘Reducing the Complexity Costs of 401(k) Participation Through Quick Enrollment', NBER Working Paper.
Summary by Mark Egan
Employees were given the option to make a Quick Enrollment ™ decision to enroll in their 401(k) plan at predetermined contribution rates and asset allocations. At one company Quick Enrollment tripled 401(k) participation rates among new employees 3 months after hire. In keeping with the other works on pensions, simplification of the decision-making process is a major factor in influencing consumer choice.
Tactics used
TACTICS
Reduce Friction or Barriers
TACTICS
Reduce Cognitive Load
Behaviors addressed
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