Automatic for the people: New approaches to building savings
The Obama administration recently announced a series of measures aimed at making it easier for Americans to save. As the New York Times article on the initiative noted, the measures are all rooted in research from the field of behavioral economics:
One key finding in that research is that people are more likely to contribute to a retirement savings account, like an employer-sponsored 401(k) plan, if they are enrolled automatically. Workers have usually had to sign up for the plan, something that large percentages of people either postponed or never did at all.
The Administration’s measures will: Read the rest of this entry »
