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

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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

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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

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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

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

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