A good pension plan should have a default investment fund chosen to approximate what employees would pick if they were sophisticated (had a PhD in finance), helping the unsophisticated; whether this is called paternalism or self-interest is merely arguing about words since both aim at the same outcome.

normativepending

Speaker

Richard Thaler

Evidence Quote

our best guess as to what they would pick if they went out and got a PhD in finance

Source

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

My Notes

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