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Economics

Behavioral Nudges for Increasing Retirement Savings Participation

Quick fact

In a landmark study, automatic enrollment in a U.S. 401(k) plan raised participation from around 40% to over 90% within a few months, purely by flipping the default option.

Why this is interesting

You might think that offering a retirement plan with a company match is enough to get people to join. But simply changing the default from 'opt-in' to 'opt-out' can boost participation from about 40% to over 90%.