Behavioral insights are key to retirement success

When University of Chicago Economist Richard H. Thaler was awarded the 2017 Nobel Prize for his seminal role in behavioral economics, it came as no surprise to those of us working in the retirement savings industry. For more than 30 years, we have been applying the ideas of academics like Mr. Thaler and others to create workplace savings plan designs that help working Americans achieve much greater retirement readiness. Insights from behavioral finance now underlie such best practices as automatic enrollment, allocation and escalation that help tens of millions of workers turn wages into wealth through 401(k) plans and individual retirement accounts that today hold more than $16 trillion. ….[READ]