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Thank Richard Thaler for your retirement savings

Thaler and other adherents of behavioural economics pointed out that workers saving for retirement can be their own worst enemies

Ben Steverman | Bloomberg 

If you have a 401(k) plan at work, there’s a good chance that you’re saving more for retirement because of Richard Thaler. The Nobel prize for economics tries to recognise important research with far-ranging consequences—but Thaler, awarded the prize Monday, may be its first winner to have had an almost immediate effect on millions of people’s paycheques. Over the last few decades, as more and more American employers killed off their pensions, workers were offered 401(k)s or similar retirement plans, with defined contributions instead of defined benefits. These ...

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First Published: Wed, October 11 2017. 02:02 IST