The Effect of Providing Peer Information on Retirement Savings Decisions

John Beshears, Harvard University, USA
James Choi, Yale University, USA
David Laibson, Harvard University, USA
Brigitte Madrian, Katherine Milkman, Harvard University, USA; University of Pennsylvania, USA
We conducted a field experiment to evaluate the effect of receiving information about the retirement savings decisions of one’s peers on 401(k) enrollment and contribution rates. Among the primary group studied, savings plan enrollment was significantly reduced by messaging indicating that the vast majority of one’s peers were enrolled.
[ to cite ]:
John Beshears, James Choi, David Laibson, and Brigitte Madrian, Katherine Milkman (2011) ,"The Effect of Providing Peer Information on Retirement Savings Decisions", in NA - Advances in Consumer Research Volume 38, eds. Darren W. Dahl, Gita V. Johar, and Stijn M.J. van Osselaer, Duluth, MN : Association for Consumer Research.