Tax-Sheltered Retirement Accounts: Can Financial Education Improve Decisions?
with Pierre-Carl Michaud (HEC Montreal)
11:00 am
12:30 pm
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(with M. Martin Boyer and Philippe d'Astous)

We conduct a stated-choice experiment to analyze the decision to contribute to front- or back-loaded tax-sheltered savings accounts. Our experimental design includes a randomized financial education treatment that provides information on these accounts. We assess whether respondents learn about the tax implications of these accounts and make contribution choices that increase after-tax income when exposed to the intervention. We find that our intervention improves both the understanding of the tax implications of the savings accounts (an increase of 6 to 15 percent) and contribution decisions. We find effects on after-tax lifetime-income for respondents by up to $1,900 per scenario presented.

Full draft available at: https://www.nber.org/papers/w26128

Light lunch provided for registered participants; please register by October 18, 10:00 a.m. (registration link below seminar title)

Supported by the Luxembourg National Research Fund (RESCOM/2021/16537536)

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