This is the article on the Save More Tomorrow program we talked about in class.
"In the program, which is designed to be offered by employers, people agree ahead of time to contribute to a retirement plan, and to have their contributions automatically increased regularly, corresponding with when they receive payraises. The first implementation of Thaler and Benartzi's system involved a midsized manufacturing company; over 28 months, the average saving rates of those in the program increased more than threefold, from 3.5% to 11.6%. Interestingly, the minority of employees who opted not to enroll in the plan had originally saved, on average, more than those who signed up -- 5.3% of their income, as opposed to 3.5%. But after the 28 months, the longtime savers only increased that rate to 7.5%, far less than the participants' 11.6%."
Thursday, November 04, 2010
Enjoy Today and Save More Tomorrow - Yahoo! News: