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Psychology

Behavioral Nudges and Retirement Savings Participation Rates

Quick fact

When 401(k) plans switched from an opt-in system to automatic enrollment, participation rates often jumped from around 60% to over 90%.

Why this is interesting

Have you ever stuck with a default setting on your phone or computer, even if a better option was available? Now imagine that tiny tendency, multiplied across thousands of people, could significantly change how well they prepare for retirement.