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Economics

Behavioral Nudges and Retirement Savings Decisions

Quick fact

In a landmark study, 401(k) participation jumped from around 20% to 90% when companies switched from requiring employees to sign up for retirement savings to automatically enrolling them with the option to opt out.

Why this is interesting

You probably know you should save for retirement, yet millions of people don't. What if simply changing a checkbox on a form could make millions of people save more?