Netspar Brief 15 – More Choice Does Not Lead to Greater Pension Engagement

Lack of choice under the Dutch pension system is often cited as the reason for the low level of pension engagement among participants. A Netspar study of Swedish pension participants has revealed, however, that more choice does not automatically lead to greater engagement. Too much choice can even be paralyzing – certainly for people with limited financial knowledge. It is therefore essential when offering freedoms to institute a sound choice architecture and limit the number of options available. Communication (preferably customized) can be a very effective means of increasing involvement. Interventions such as framing, the use of images, and interactive pension tools help expand individuals’ knowledge of their own pension situation.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

MORE ABOUT NETSPAR


Mission en strategy           •           Network           •           Organisation           •          Magazine
Netspar Brief            •            Actionplan 2019-2023           •           Researchagenda

ABOUT NETSPAR

Our partners

B20160708_university of groningen
B20160615_pggmgroengrijs_grijswaarden_small
B20160708_universiteit utrecht
B20160708_cardano
B20160708_afm
View all partners