On track for retirement?

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

Over sixty percent of employees at a large South African company contribute the minimum rate of 7.5% to a retirement fund—far below the rate of 15% recommended by financial advisers. I use a field experiment to investigate whether providing employees with a retirement calculator, which shows projections of retirement income, leads to increases in contributions. The impact is negligible. The lack of response to the calculator suggests many employees may wish to save less than the minimum. I use a model of asymmetric information to explain why the employer sets a binding minimum.

Original languageEnglish
Pages (from-to)76-88
Number of pages13
JournalJournal of Economic Behavior and Organization
Volume190
DOIs
Publication statusPublished - Oct 2021
Externally publishedYes

Keywords

  • Defined contribution plans
  • Financial literacy
  • Retirement saving

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