What you don't know can't help you
What you don't know can't help you
About this book
"This paper provides an answer to an important empirical puzzle in the retirement literature: while most people know little about their own pension plans, retirement behavior is strongly affected by pension incentives. We combine administrative and self-reported pension data to measure the retirement response to actual and perceived financial incentives. We find that well-informed individuals are five times more responsive to pension incentives than the average individual when knowledge is ignored. We further find that the ill-informed individuals do respond to their own misperception of the incentives, rather than being unresponsive to any incentives"--National Bureau of Economic Research web site.
Details
- OL Work ID
- OL5891374W
Subjects
Decision makingPensionsRetirement