Related to the Economics in Practice on p. 466: Under the Save More Tomorrow retirement plans, employees can pre-commit to save more
A) when the opt out of the social security system.
B) whenever they get a pay raise.
C) at the beginning of each fiscal year.
D) when income tax rates increase.

Question

Quizplus · Accepted Answer

Under the Save More Tomorrow retirement plans, employees can pre-commit to save more whenever they get a pay raise. This allows employees to increase their savings without feeling the immediate impact on their current income. By automatically enrolling employees in a retirement plan and allowing them to increase their contributions with each pay raise, they are more likely to save more for retirement.

Related to the Economics in Practice on P