Abstract
The wide range of 401(k) plans offered to employees has raised the question of whether there is such as thing as too much choice. The 401(k) participation rates among clients of the Vanguard Group were studied to verify the assumption that more choice is more desirable and intrinsically motivating. It was found that 401(k) plans that offered more funds had lower probability of employee participation.
Full Citation
Iyengar, Sheena, Gur Huberman, and Wei Jiang.
“How Much Choice is Too Much? Contributions to 401(k) Retirement Plans.”
In Pension Design and Structure: Lessons from Behavioral Finance,
edited by Olivia S. Mitchell and Stephen P. Utkus,
83-96.
Oxford, UK:
Oxford University Press,
2004.