12/7/2015 – Fixing The Weakest Link: Strengthening Retirement Security By Default (Forbes)

The field of behavioral economics has been instrumental in understanding how to deal with such issues. One significant contribution has led to the establishment of default features that automatically enroll new employees into DC plans using a sensible contribution rate schedule and investment strategy. These help address peoples’ tendencies to postpone enrollment and to make poor decisions later when they finally do enroll (e.g., select inappropriate or under diversified asset allocations, chase performance, panic sell).

Read the full article in Forbes.