Policy seminar

Polinar: 'Flicking the Switch: Simplifying Disclosures to Improve Retirement Plan Choices'

Donderdag 25 januari 2018 geeft Hazel Bateman (UNSW Sydney & CEPAR) een presentatie getiteld: 'Flicking the Switch: Simplifying Disclosures to Improve Retirement Plan Choices'.

Datum
25 januari 2018
Tijd
13:00 - 14:00
Locatie
CPB kantoor, vergaderzaal 1 (Duinzaal), Bezuidenhoutseweg 30, Den Haag
Presentatie
Hazel Bateman (UNSW Sydney & CEPAR)
Discussant
Ralph Stevens (CPB)
Voertaal
English

Simplified disclosures can make comparisons between complex financial products easier, and increase consumer expertise. We use incentivized experiments to investigate whether and to what extent simpler information on fees and investment returns assists retirement plan members to make competent choices. We find that members switch quickly from a high-fee plan to the low-fee alternative when fees are shown in nominal dollars. Showing fees as percentages, however, significantly slows down their transition to a low-fee plan. Complex returns information makes it hard for members to recognize and react to relatively poor investment performance, while simplified information reduces losses considerably.

Contactpersonen

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