Defaults and 401k enrollment

Status Quo Bias and Financial Products
Intervention Financial Products

Intervention Desrciption

Researchers gave employees two options: either the standard 401(k) plan without preselected defaults or a Quick Enrollment plan with preset decisions on rates and asset allocations. They found that by streamlining the process of setting up a retirement plan (Quick Enrollment), they were able to triple 401(k) participation rates among new employees.