When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan
AbstractTo inform economists and policymakers about whether the effects of nudges are persistent in one specific context, we study the choice architecture of the Swedish Premium Pension Plan. The data we study consist of all initial choices and subsequent rebalancing activities by the entire population of 7.3 million retirement savers in Sweden during the period 2000 to 2016. Based on our analysis of these data, we conclude that the effects of nudging in this case were surprisingly persistent and seem to last nearly two decades, if not forever.
CitationCronqvist, Henrik, Richard H. Thaler, and Frank Yu. 2018. "When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan." AEA Papers and Proceedings, 108: 153-58. DOI: 10.1257/pandp.20181096
- D14 Household Saving; Personal Finance
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
- H55 Social Security and Public Pensions
- J26 Retirement; Retirement Policies
- J32 Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions