Switching the 401k default from opt-in to automatic enrollment (opt-out) produces large increases in participation—sometimes as much as a 40% increase—contradicting standard economic predictions that the trivial cost of filling out a form would make the default irrelevant and that companies would already have adopted the better arrangement.

causalpending

Speaker

Richard Thaler

Evidence Quote

the automatic enrollment has huge effect sometimes isn't it much as a 40% increase in enrollments

Source

Richard Thaler on Libertarian Paternalism 11/6/2006EconTalk
Created: 6/13/2026, 7:01:05 PM

My Notes

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