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International Foundation Reports on the Effect of Behavioral Finance to Help Improve Retirement Savings

On March 15, 2019, the International Foundation of Employee Benefit Plans (IFEBP) issued a white paper, “Ten Ways Behavioral Finance Can Boost Retirement Security.” According to the paper, employers, plan sponsors and plan administrators may utilize the insights of behavioral finance based on emotional, social and cognitive factors to make changes that may affect the decision making and actions of employees and plan participants to help increase their retirement savings.

Through effective retirement plan design and communication, employers can encourage workers to make better decisions. Specifically, the IFEBP offers ten tips based on behavioral finance principles to support employees working to achieve retirement security.  One important factor presented would be to provide access to and encourage the use of a financial advisor.

The paper is accessible here.