NBER The Effect of Default Options on Retirement Savings

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NBER The Effect of Default Options on Retirement Savings
National Bureau of Economic Research [NBER]

Nov. 17, 2006

Excerpt: Most employer-provided pension plans in the U.S. have standard enrollment, where workers must opt in if they wish to participate. However, some plans have automatic enrollment, where workers instead must opt out if they do not wish to participate. The authors find that having automatic enrollment leads workers to join the plan at a much faster rate.

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