Save More Tomorrow™: Using Behavioral Economics to Increase Employee Saving

  title={Save More Tomorrow{\texttrademark}: Using Behavioral Economics to Increase Employee Saving},
  author={Richard H. Thaler and Shlomo Benartzi},
  journal={Journal of Political Economy},
  pages={S164 - S187}
As firms switch from defined‐benefit plans to defined‐contribution plans, employees bear more responsibility for making decisions about how much to save. The employees who fail to join the plan or who participate at a very low level appear to be saving at less than the predicted life cycle savings rates. Behavioral explanations for this behavior stress bounded rationality and self‐control and suggest that at least some of the low‐saving households are making a mistake and would welcome aid in… 

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