Abstract
This paper provides an overview of a wide array of research investigating the effects of pension information on different individuals’ economic outcomes. While many studies show that information provision increases knowledge, the evidence is mixed regarding its effects on behavior. Nevertheless, we draw some conclusions about the impact of pension information on three major economic outcomes, namely, retirement planning, choices pertaining individuals’ labor supply, and savings decisions. We also highlight that the lack of knowledge prevalently hits the most vulnerable individuals in the society, such as women. As a consequence, not providing sufficient information could contribute to widening the gender gap in pensions.
Highlights
In recent decades, many countries have shifted from defined benefit to defined contribution pension schemes, where pension information becomes crucial in order to make sound retirement decisions
As public pensions constitute a substantial share of the whole retirement income for many workers, it is important for governments to provide individuals with information about their public retirement benefits (Fornero et al 2019)
Different online calculators provided by different commercial institutions allow the calculation of pension projections
Summary
Many countries have shifted from defined benefit to defined contribution pension schemes, where pension information becomes crucial in order to make sound retirement decisions. ] or retire earlier than they would have if equipped with better pension information.”. Such knowledge is related to information; it depends on the costs and benefits of gathering information (Gustman and Steinmeier 2005). As public pensions constitute a substantial share of the whole retirement income for many workers, it is important for governments to provide individuals with information about their public retirement benefits (Fornero et al 2019). While it has been found that pension information is effective in increasing retirement knowledge, the evidence is mixed regarding its impact on economic behaviors.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
