Default options in the design of pensions have proved to be effective in increasing the contribution rate of participants.

This study shows that this is true particularly for young and lower-income people (i.e. default options in the design of pensions have more effects on these groups).

If there is only one default option to be applied to all participants of a Fund, the study argues that policy makers should assign more weight to the preferences of individuals who are most affected by these defaults, i.e. young people and the poor.

To review the study in detail, please download it here.