Cues Change Saving Behavior

by | May 14, 2014 | Institutional Services

Using several versions of e-mails to retirement plan participants, researchers at Yale University conducted experiments to determine if certain written cues would affect the saving behavior of participants. The e-mails reminded participants of the employer match and how much the participant had contributed so far in the year, and allowed the researchers to study the impact of specific wording and examples on saving rates.

The researchers concluded that small numerical cues can, indeed, influence retirement plan contributions. Contribution rate increase examples, when relatively low, decreased contribution rates up to 1.5% of income. When high, rates rose by almost 3% of income. They also found that an example of a high savings goal increased contribution rates by up to 2.2% of income. And when a higher savings threshold was used as an example, contributions rose

up to 1.5% of income. Lastly, when the maximum permissible contribution rate was presented as an example, contributions rose by almost 3% of income.

Small Cues Change Savings Choices from Yale University is available at

Latest From The Blog


Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us

Financial Services Group BBB Business Review