Long way to go? Simplifying pension plan information improves participants’ understanding but does not change behavior.
Presenting pension information in a simple way with short sentences, without difficult terms, and in plain vanilla language improves participants’ understanding of pension plan features. However, we find no effect on participants’ subjective evaluation of the information quality or on their willingness to take action.
Pension plans are inherently complex as is the information published about them. Simplifying the information provided does help participants gain a better understanding of their pension plan. However, simplifying information is not sufficient to engage new participants. Other methods are required to increase pension plan engagement.
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