Informing and Improving Retirement Saving Performance using Behavioural Economics Theory-driven User Interfaces
Informing and Improving Retirement Saving Performance using Behavioural Economics Theory-driven User Interfaces
7 July, 2020 •Similar Articles
The Impact of Transaction Fees on Migrant Remittances: Evidence from a Field Experiment Among Migrants from El Salvador
The remittances that migrants send to their home countries are one of the largest international financial flows to the developing world. A common p...
The value of a good credit reputation: Evidence from credit card renegotiations
I exploit a natural experiment to estimate borrowers’ willingness to pay for a good credit reputation. A lender in Chile offered lower installmen...
Paying in pieces: A natural experiment on consumer demand under different payment schemes
We exploit a large-scale natural experiment to estimate the causal impact of a switch in payment modality on demand for a popular life insurance pr...
Can human-computer interaction help people make informed and effective decisions about their retirement savings? We applied the behavioral economic theories of endowment effect and loss aversion to the design of novel retirement saving user interfaces. To examine effectiveness, we conducted an experiment in which 487 participants were exposed to one of three experimental user interface designs of a retirement saving simulator, representing endowment effect, loss aversion and control. Users made 34 yearly asset allocation decisions. We found that designs informed by the endowment effect and loss aversion theories and which communicated to savers the long-term implications of their asset allocation choices, led users to adjust their behavior, make larger and more frequent asset allocation changes, and achieve their saving goals more effectively.