Understanding and improving pension savings by combining incentivized experiments, survey, and administrative big data – A general employed population sample with a focus on the selfemployed
Pension-savers are a hugely heterogeneous group with varying preferences, beliefs and biases (PBBs). In this project we provide detailed insights into PBBs in representative samples of Dutch selfemployed and employees and examine the relation of PBBs to (pension-)savings decisions. In light of the general trend towards greater individual responsibility for pension-saving and the fact that the selfemployed already now face substantial responsibility to accumulate savings, detailed knowledge about PBBs is essential for the development of tailor-made policies and smart pension-savings products.
In two work packages (WP), combining methods from behavioral economics, political science and data science, our project delivers this knowledge and provides input for the design of targeted policies and pension-savings products for different groups of pension-savers. With our output pension practitioners can explicitly meet the preferences of these specific groups and take their beliefs and biases into account, both within the Dutch employed population in general and within the selfemployed
WP1, using economic experiments and surveys, elicits PBBs and links these to administrative data of Statistics Netherlands (CBS) to show how PBBs are distributed in the socio-economic domain and how they are related to actual (pension-)savings decisions.
Combining data generated in WP1 and administrative CBS data, WP2 applies state-of-the-art data science methods to develop an alternative fine-grained classification of the investigated samples regarding PBBs and their effects on (pension-)savings, thereby cross-validating the results of WP1. It will also develop a software prototype providing advice through targeted default pension savings options.