Does menu design influence retirement investment choices ? evidence from Italian occupational pension funds

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4 Citations (Scopus)

Abstract

Previous research has demonstrated that consumers’ decisions regarding supplementary pensions could be affected by biases. Bernatzi and Thaler’s experiment demonstrated that menu design can influence pension fund enrollment decisions, in that participants appear to adopt a naïve heuristic, i.e., “extremeness aversion”. Using a database of 27 occupational pension funds from 2007 to 2011, representing 1,732,530 employees, this study asked whether menu design affected Italian workers’ choices regarding the supplementary pension system as a result of the new rules enacted by the regulator in 2007. Most enrolled workers opted for the median investment line. I discuss the possible relevance of this result to public policy, in particular the possibility of including these preferences in the regulations, with the aim of benefiting employees.
Original languageEnglish
Pages (from-to)77-82
Number of pages6
JournalJudgment and Decision Making
Volume2014
Publication statusPublished - 2014

Keywords

  • decision making
  • pension funds

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