Retirement planning and saving is often a difficult task for individuals and families. Studies show that more than one in four workers have less than $1000 in retirement savings. The question of how to stimulate employees to save for retirement has led to a variety of different tactics. Our March 1st webinar, discussed a field study completed by researchers from the Center for Financial Security, which tracks the effect of financial education on retirement savings in an online format. Results of the study show that this information-based intervention increases the reported participation in retirement planning, saving and using a budget. Presenters included Carly Urban, Assistant Professor, Department of Economics, Montana State University; Billy Hensley, Senior Director of Education, National Endowment for Financial Education; Tarna Hunter, Director of Strategic Engagement and Government Relations, Wisconsin Department of Employee Trust Funds; and Shelly Schueller, Deferred Compensation Director, Wisconsin Department of Employee Trust Funds.
Retirement planning is a difficult task for many people in the U.S. and as studies by the National Institute on Retirement Security show, about 38 million working-age households do not have any retirement savings. Various tactics to increase participation in retirement savings in the workplace have been employed, such as tax subsidies and automatic defaults. Some states are even seeking to pass legislation on state run retirement programs for private sector employees.
A newly published paper,The Role of Information on Retirement Planning: Evidence from a Field Study, authored by CFS Faculty Director J. Michael Collins and CFS Research Fellow Carly Urban, present the findings of a randomized field study showing that an information-based intervention increased participation in retirement plan savings. Education programs offered to employees increased their monthly contributions to retirement accounts, a finding that shows promise for retirement education programs as a strategy for increased saving.
The Center for Retirement Research sponsors the annual Steven H. Sandell Grant Program for scholars in the field of retirement research and policy. The program is funded by the U.S. Social Security Administration to provide opportunities for junior scholars from all academic disciplines to pursue cutting-edge projects on retirement income issues.
This year J. Michael Collins, Carly Urban and Erik Hembre were awarded the Sandell Grant for their research around the role of mortgages in retirement.
Drew Anderson was awarded the Sandell Grant for his work in the area of women’s retirement savings and the influence of increasing knowledge and attention to retirement planning on their account balances.
Collins discusses a recent study conducted by a team of researchers, including Max Schmeiser and Carly Urban both CFS Affiliates, that saw positive results in states that mandated financial
literacy curriculum. Dave Mancl, of the Wisconsin Office of Financial Literacy, speaks about the model that Wisconsin uses.