Question
How does an employer's presentation of retirement savings options affect employees' decisions to save?
A: by automatically enrolling employees to tap into their default bias
B: by assigning employees to different saving courses in the retirement plan
C: by offering various saving courses in the retirement plan
D: by making the plan more complex to get employees more involved
A: by automatically enrolling employees to tap into their default bias
B: by assigning employees to different saving courses in the retirement plan
C: by offering various saving courses in the retirement plan
D: by making the plan more complex to get employees more involved
Answers
GPT-4o mini
The most appropriate answer is:
**A: by automatically enrolling employees to tap into their default bias.**
Automatic enrollment leverages the psychological concept of default bias, where individuals are more likely to stick with an option if it is the default choice presented to them. This approach can significantly increase participation rates in retirement savings plans.
**A: by automatically enrolling employees to tap into their default bias.**
Automatic enrollment leverages the psychological concept of default bias, where individuals are more likely to stick with an option if it is the default choice presented to them. This approach can significantly increase participation rates in retirement savings plans.