Nudge Chapter 10 Flashcards
What are the demographic trends that affect SSN?
The demographic trends include that people are living longer and people are having less children.
What is the Sweden Pension Plan option B?
Participants chose their own portfolios through extensive advertising. This was done to battle nudges.
What are active choosers?
People who make conscious and deliberate decisions. In the Swedish plan it was those who used campaign and ads and their own chosen portfolios.
What is the Allra fund incident?
It was a fraud incident where one of the fund companies in the pension system stole money. As a result, they prohibited people from switching into Allra but allowed people to shift their contributions out of Allra. Despite this, not a lot of people moved their funds after the scandal.
What were the lessons learned from Sweden about Inertia?
People who were nudged to make their own portfolios stuck with that approach but became passive after a while. This was seen in the scandal where people were nudged into making their own portfolio but did not care about the scandal to move their funds.
What are some suggestions to change the plan of pension in Sweden?
Including a reduction in the number of funds and elimination of leverage in the default fund. Also, a restart would also work too.
