Policy seminar

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

Thursday January 25th 2018 Hazal Bateman (UNSW Sydney & CEPAR) will give a presentation titled: 'Flicking the Switch: Simplifying Disclosures to Improve Retirement Plan Choices'.

Date
January 25, 2018
Time
13:00 - 14:00
Location
CPB office, room 1 (Duinzaal), Bezuidenhoutseweg 30, the Hague
Presentation
Hazel Bateman (UNSW Sydney & CEPAR)
Discussant
Ralph Stevens (CPB)
Working language
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.

Contacts

Foto Benedikt Vogt
Benedikt Vogt +31 6 50630893 Read more