Using Behavioral Interventions to Increase Retirement Savings Technical Report

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Release Date: May 01, 2017

Using Behavioral Interventions to Increase Retirement Savings Technical Report

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Topic

Worker Protection, Labor Standards, and Workplace-Related Benefits

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About the Report

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In 2014, the U.S. Department of Labor’s (DOL’s) Chief Evaluation Office (CEO) contracted with Mathematica Policy Research and ideas to explore the potential of using insights from behavioral science to improve the performance and outcomes of DOL programs. In this study, the DOL Behavioral Interventions (DOL-BI) team partnered with the Human Resources Division of DOL (DOL-HR) and the Employee Benefits Security Administration (EBSA) to explore whether low-cost, behaviorally informed emails would result in more DOL employees saving, or saving more, for retirement. As described in the report, the researchers conducted two phases of tests, in the fall of 2015 (Phase 1) and spring of 2016 (Phase 2), which examined different behavioral messages and reminder strategies. Tests yielded strong positive results: The most effective intervention tested increased the share of employees saving at least 5 percent of their income by 7.5 percentage points.

Research Questions

  • Can emails informed by behavioral science encourage more DOL employees to increase their savings?
  • What email communication strategies are most effective at improving savings?
  • For whom do these emails work?
  • What lessons might help inform similar efforts in other contexts?

Key Takeaways

  • Low-cost, behaviorally informed emails increased the number of DOL employees receiving the full employer match by up to 7.5 percentage points.
  • Invoking social norms did not appear to increase the message's effectiveness.
  • Reminders did not appear to increase the effects of initial emails.
  • Timing likely influenced the emails' impact. Phase 2 emails had larger impacts on all savings outcomes examined.
  • The effects of emails were strongest for those already contributing at least some amount to the Thrift Savings Plan (TSP) and for DOL employees who were union members.

Citation

Amin, S., Chojnacki, G., Moorthy, A., Perez-Johnson, I., Darling, M., Lefkowitz, J. (2017). Mathematica. Using Behavioral Interventions to Increase Retirement Savings Technical Report. Chief Evaluation Office, U.S. Department of Labor.

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The Department of Labor’s (DOL) Chief Evaluation Office (CEO) sponsors independent evaluations and research, primarily conducted by external, third-party contractors in accordance with the Department of Labor Evaluation Policy and CEO’s research development process.