Using fresh starts to nudge increased retirement savings

We conducted a field experiment to study the effect of framing future moments in time as new beginnings (or fresh starts). University employees (N = 6,082) received mailings with an opportunity to choose between increasing their contributions to a savings plan immediately or at a specified future time point. Framing the future time point in relation to a fresh start date (e.g., the recipient's birthday, the first day of spring) increased the likelihood that the mailing recipient chose to increase contributions at that future time point without decreasing their likelihood of increasing contributions immediately. Overall, fresh start framing increased retirement plan contributions in the eight months following the mailing. Our findings represent the first experimental demonstration of the benefits of fresh start framing in a consequential field setting.

Automated summary

This study found that framing future moments as new beginnings increased the likelihood of individuals choosing to increase their contributions to a retirement plan at a specified future time point, without decreasing their likelihood of immediate action. Overall, this fresh start framing led to increased contributions to the retirement plan in the following eight months. It represents the first experimental evidence of the benefits of fresh start framing in a real-world setting.