Using lessons learned from behavioral economists, which of the following would be most likely to increase retirement savings?
A)Specifying that all retirement contributions are to be made by personal check only
B)Allowing customers to make contributions of any amount whenever they desire
C)Enabling automatic deductions from paychecks, but allow customers to make as many changes to the amount as they like without cost or obligation
D)Allowing customers to commit to an increasing portion of their paycheck being automatically deposited in retirement savings in future years
E)Charging service fees for contributions under $100

Question

Quizplus · Accepted Answer

Behavioral economists suggest that allowing customers to commit to increasing their savings in the future (a strategy known as "Save More Tomorrow") leverages the tendency to procrastinate and the preference for immediate gratification, thus increasing retirement savings over time.

Using Lessons Learned from Behavioral Economists, Which of the Following