When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan

Cronqvist Henrik; H. Thaler Richard; Frank Yu

doi:10.1257/pandp.20181096

When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan

Cronqvist Henrik, H. Thaler Richard, Frank Yu

Finance

Research output: Contribution to journal › Journal

54 Downloads (Pure)

Abstract

To inform economists and policy makers 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.

Original language	English
Pages (from-to)	153-58
Journal	AEA Papers and Proceedings
Volume	108
DOIs	https://doi.org/10.1257/pandp.20181096
Publication status	Published - May 2018

Source

Available at SSRN: https://ssrn.com/abstract=3099886 or http://dx.doi.org/10.2139/ssrn.3099886

Keywords

behavioral economics
retirement saving
pension
nudge
default choice

Access to Document

10.1257/pandp.20181096

SSRN-id3099886 When Nudges are Forever Inertia in the Swedish Premium Pension PlanAccepted author manuscript, 169 KBLicence: CC BY-NC-ND

OpenUrl availability

Full text

Cite this

@article{f48335b0249b4af2862227f61c8697c4,

title = "When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan",

abstract = "To inform economists and policy makers 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.",

keywords = "behavioral economics, retirement saving, pension, nudge, default choice",

author = "Cronqvist Henrik and Richard, {H. Thaler} and Frank Yu",

year = "2018",

month = may,

doi = "10.1257/pandp.20181096",

language = "English",

volume = "108",

pages = "153--58",

journal = "AEA Papers and Proceedings",

issn = "2574-0768",

}

TY - JOUR

T1 - When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan

AU - Henrik, Cronqvist

AU - Richard, H. Thaler

AU - Yu, Frank

PY - 2018/5

Y1 - 2018/5

N2 - To inform economists and policy makers 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.

AB - To inform economists and policy makers 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.

KW - behavioral economics

KW - retirement saving

KW - pension

KW - nudge

KW - default choice

U2 - 10.1257/pandp.20181096

DO - 10.1257/pandp.20181096

M3 - Journal

SN - 2574-0768

VL - 108

SP - 153

EP - 158

JO - AEA Papers and Proceedings

JF - AEA Papers and Proceedings

ER -

When Nudges Are Forever: Inertia in the Swedish Premium Pension Plan

Abstract

Source

Keywords

Access to Document

OpenUrl availability

Fingerprint

Cite this