Research
Working Papers:
Dissertation Fellowship: Social Security Administration and the Center for Retirement Research at Boston College, Robert R. Nathan Fellowship
Grants: Social Security Administration, AARP, Pew Charitable Trusts, Wharton Boettner Center/Pension Research Council
Conferences (including scheduled): World Risk and Insurance Economics Congress (2020), RAND Behavioral Finance Forum (2020), National Tax Association's Annual Conference on Taxation (2020), Association for Public Policy Analysis & Management (APPAM) Fall Research Conference (2020), National Association for Business Economics (NABE) Tech Economics Conference (TEC2020), ASSA/AEA Virtual Annual Meeting (2021), Western Economic Association International (WEAI) Virtual International Conference (2021), Midwest Finance Association Annual Conference (2021), Southwestern Finance Association Annual Conference (2021), Midwest Economics Association Annual Conference (2021), Eastern Economic Association Conference (2021), NBER Aging Program Meeting (2021), Western Economic Association International (WEAI) Virtual 96th Annual Conference (2021)
Abstract: I theoretically analyze and empirically identify the optimal default savings rate in automatic enrollment retirement saving plans. I derive a formula for the optimal default as a function of sufficient statistics that can be empirically identified. I estimate individual adherence to the default using exogenous increases in the default rate of OregonSaves, the first state-sponsored auto-enrollment plan in the U.S. I also use survey data to infer the degree of undersaving if workers actively switch to a non-default rate. Combining estimates from administrative and survey data with the optimal default formula, I find the optimal default is 7% of income.
Auto-Enrollment Retirement Plans for the People: Choices and Outcomes in OregonSaves (with John Chalmers, Olivia S. Mitchell, and Jonathan Reuter)
Conferences: Social Security Administration Retirement and Disability Research Consortium Annual Meeting (2019), NBER Conference on Incentives and Limitations of Employment Policies on Retirement Transitions (2019)
Media coverage: Brookings, MarketWatch, NBER Digest, ThinkAdvisor, 401kspecialist
Abstract: Oregon recently launched an automatic-enrollment retirement savings program for private sector workers lacking access to other workplace retirement plans. We analyze participation choices, account balances, and inflow/outflow data using administrative records between August 2018 and April 2020. Within the small to mid-sized firms served by OregonSaves, estimated average aftertax earnings are low ($2,365 per month) and turnover rates are high (38.2% per year). Younger employees and employees in larger firms are less likely to opt out, but participation rates fall over time. The most common reason given for opting out is “I can’t afford to save at this time,” but the second most common is “I have my own retirement plan.” As of April 2020, 67,731 accounts had positive account balances, holding$51.1 million in total assets. The average balance is $754, but with considerable dispersion; younger workers accumulating the fewest assets due to higher job turnover. Overall, we conclude that OregonSaves has meaningfully increased employee savings by reducing search costs. The 34.3% of workers with positive account balances in April 2020 is comparable to the marginal increase in participation at larger firms in the private sector. Employees opting out of OregonSaves are often doing so for rational reasons.