Personalized Information as a Tool to Improve Pension Savings

Results from a Randomized Control Trial in Chile

Bibliographic Data

ID5155904
AuthorsOlga Fuentes, Jeanne Lafortune (0000-0003-0127-0646, Pontificia Universidad Católica de Chile), Julio Riutort (0000-0002-6350-9395, Adolfo Ibáñez University), José Tessada (Pontificia Universidad Católica de Chile), Félix Villatoro (0000-0002-0532-3904, Adolfo Ibáñez University)
Year2024
Volume72
Issue2
Pages725-770
Publication date2024-01-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueEconomic Development and Cultural Change (JOURNAL)
Journal identifiersISSN: 0013-0079 • E-ISSN: 1539-2988
PublisherUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/720718
OpenAlexW2620541389
LanguageEN
Citations received2
References cited39

Forecasting of the outcome of saving for retirement is challenging, particularly for individuals who have limited financial literacy. We explore how reducing that barrier by offering personalized information affects long-term savings. To this end, we randomly offered personalized information or general information within the context of individual retirement accounts in Chile. Personalized information increased voluntary pension savings. Heterogeneity analysis suggests that the updating of priors by information recipients played an important role. However, despite the significant short-term response to the intervention, its temporary nature and limited magnitude are not enough to meaningfully alter the annuity payment that would be obtained from the savings stock

Actuarial science · Annuity · Business · Context (archaeology) · Control (management) · Economics · Financial literacy · Intervention (counseling) · Life annuity · Payment · Pension · Randomized controlled trial · Stock (firearms) · Finance · Financial Literacy, Pension, Retirement Analysis · Insurance, Mortality, Demography, Risk Management · Medicine · Retirement, Disability, and Employment