Default bias and household savings

Status Quo Bias and Financial Products
Intervention Financial Products

Can automatic programs make saving easier?

Intervention Description

Customized solutions

Effective interventions start with a nuanced understanding of the problem. We work with our clients to understand their unique contexts, and then develop bespoke solutions for meaningful behavior change.

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Investing in a pension scheme can sometimes be hard to do independently. When comparing Danish tax records, it was shown that tax subsidies and auto-enrollments in pension scheme resulted in different outcomes. It was found that automatic programs are more effective than subsidies to increase pension savings.

Customized solutions

Effective interventions start with a nuanced understanding of the problem. We work with our clients to understand their unique contexts, and then develop bespoke solutions for meaningful behavior change.

Our consulting services Icon arrow right white color

Sources

Chetty et al. (2012), Active vs. Passive Decisions and Crowdout in Retirement Savings Accounts: Evidence from Denmark, NBER Working Paper