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Optimal Default Retirement Saving Policies: Theory and Evidence from OregonSaves
Pension Research Council, the Wharton School of the University of Pennsylvania Jan. 9, 2020 "The optimal default contribution rate is shaped by the social benefits of increased savings due to adherence to the default that keeps workers from undersaving ... The optimal default contribution rate is also counterbalanced by the social benefits of action when an undesirable default option compels workers to make an active decision.... [Using] individual-level administrative and survey data from OregonSaves, ... [the authors] suggest the optimal default contribution rate to be 8%." |
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