Do Income Projections Affect Retirement Saving?

Source: Gopi Shah Goda, Colleen Flaherty Manchester, and Aaron Sojourner, Issue Brief, IB#13-4, Center for Retirement Research at Boston College, April 2013

The brief’s key findings are:
• One barrier to saving may be ignorance about how it translates into retirement income.
• A recent study conducted a field experiment to see whether providing workers with retirement income projections affected the amount they saved.
• The results show that such projections, accompanied by information on retirement planning, could modestly increase saving.
o The experiment’s positive effect on saving works, in part, by boosting individuals’ knowledge and confidence.
o But its effect on saving is limited among those with who have difficulty paying bills, prefer to “live for today,” or tend to procrastinate.