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Publications
  • 2022
  • Working Paper

Automating Short-Term Payroll Savings: Initial Evidence from a Large U.K. Experiment

By: Sarah Holmes Berk, John Beshears, James J. Choi and David Laibson
  • Format:Print
  • | Language:English
  • | Pages:22
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Abstract

Automatic enrollment is often used to increase retirement plan participation. Can it be used to increase short-term savings as well? We evaluate preliminary data from an experiment at a large U.K. employer. After years of offering opt-in short-term payroll savings via a credit union, the employer introduced opt-out savings for new hires beginning in November 2021. We review initial data from the experiment. In tenure month 4, we find that scheme participation was roughly 50 percentage points higher when new hires were automatically enrolled, and balances were £68 higher.

Keywords

Retirement Savings; Participation; Automatic Enrollment; Retirement; Human Resources

Citation

Berk, Sarah Holmes, John Beshears, James J. Choi, and David Laibson. "Automating Short-Term Payroll Savings: Initial Evidence from a Large U.K. Experiment." Working Paper, July 2022.
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About The Author

John Beshears

Negotiation, Organizations & Markets
→More Publications

More from the Authors

    • 2023
    • American Journal of Health Promotion

    A Randomized Trial of Behavioral Nudges Delivered through Text Messages to Increase Influenza Vaccination among Patients with an Upcoming Primary Care Visit

    By: Mitesh S. Patel, Katherine L. Milkman, Linnea Gandhi, Heather N. Graci, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Jake Rothschild, Modupe Akinola, John Beshears, Jonathan E. Bogard, Alison Buttenheim, Christopher Chabris, Gretchen B. Chapman, James J. Choi, Hengchen Dai, Craig R. Fox, Amir Goren, Matthew D. Hilchey, Jillian Hmurovic, Leslie John, Dean Karlan, Melanie Kim, David Laibson, Cait Lamberton, Brigitte C. Madrian, Michelle N. Meyer, Maria Modanu, Jimin Nam, Todd Rogers, Renante Rondina, Silvia Saccardo, Maheen Shermohammed, Dilip Soman, Jehan Sparks, Caleb Warren, Megan Weber, Ron Berman, Chalanda N. Evans, Seung Hyeong Lee, Christopher K. Snider, Eli Tsukayama, Christophe Van den Bulte, Kevin G. Volpp and Angela L. Duckworth
    • 2022
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    How to Choose a Default

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    • AEA Papers and Proceedings

    Present Bias Causes and Then Dissipates Auto-enrollment Savings Effects

    By: John Beshears, James J. Choi, David Laibson and Peter Maxted
More from the Authors
  • A Randomized Trial of Behavioral Nudges Delivered through Text Messages to Increase Influenza Vaccination among Patients with an Upcoming Primary Care Visit By: Mitesh S. Patel, Katherine L. Milkman, Linnea Gandhi, Heather N. Graci, Dena Gromet, Hung Ho, Joseph S. Kay, Timothy W. Lee, Jake Rothschild, Modupe Akinola, John Beshears, Jonathan E. Bogard, Alison Buttenheim, Christopher Chabris, Gretchen B. Chapman, James J. Choi, Hengchen Dai, Craig R. Fox, Amir Goren, Matthew D. Hilchey, Jillian Hmurovic, Leslie John, Dean Karlan, Melanie Kim, David Laibson, Cait Lamberton, Brigitte C. Madrian, Michelle N. Meyer, Maria Modanu, Jimin Nam, Todd Rogers, Renante Rondina, Silvia Saccardo, Maheen Shermohammed, Dilip Soman, Jehan Sparks, Caleb Warren, Megan Weber, Ron Berman, Chalanda N. Evans, Seung Hyeong Lee, Christopher K. Snider, Eli Tsukayama, Christophe Van den Bulte, Kevin G. Volpp and Angela L. Duckworth
  • How to Choose a Default By: John Beshears, Richard T. Mason and Shlomo Benartzi
  • Present Bias Causes and Then Dissipates Auto-enrollment Savings Effects By: John Beshears, James J. Choi, David Laibson and Peter Maxted
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