Abstract
This study examines how automatic enrollment and employer contribution provisions relate to the retirement plan participation decisions of Millennials using data from the 2018 U.S. Financial Industry Regulatory Authority’s (FINRA) Millennial Investment Study. The analysis controls for various factors such as total debt, household income, risk tolerance, and investable assets. The findings underscore the notion that automatic enrollment and employer contribution provisions are associated with an increased likelihood of participation in retirement plans among Millennials. The empirical results reveal that the absence of auto-enrollment, lack of employer-matching contributions, or communication inadequacies are fundamental reasons for Millennials’ non-participation in employer retirement plans. These findings have important implications for employer retirement plan design and the effectiveness of their communication strategies.
Original language | English (US) |
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Article number | 52 |
Journal | Journal of Risk and Financial Management |
Volume | 17 |
Issue number | 2 |
DOIs | |
State | Published - Feb 2024 |
Keywords
- automatic enrollment
- employer contributions
- financial decision making
- millennials
- retirement plans
- retirement savings
ASJC Scopus subject areas
- Accounting
- Business, Management and Accounting (miscellaneous)
- Finance
- Economics and Econometrics