Prescriptive savings

Default Bias and Financial Products
Intervention Financial Products

Intervention Description

By offering people a savings program that (by default) increased their rate of savings every year, reseachers were able to increase the saving rate from 3.5 to 13.5%. Moreover, the program also had high participation rate (almost 78% of those offered agreed to participate) and low withdrawal rates.

Sources

Benartzi & Thaler (2004), Save More Tomorrow

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