Which of the following is a feature of the 'Save More Tomorrow' programme designed by Thaler and Benartzi?
A. An immediate large increase in current contributions
B. A programme that ignores behavioural biases
C. A mandatory increase in taxes
D. A commitment device that allows employees to pre-commit to allocating a portion of future salary increases to retirement savings
Answer: Option D
Solution (By JKSSB Mock Tests)
Save More Tomorrow is a behavioural intervention that invites employees to commit in advance to increasing their retirement contribution rates whenever they receive pay raises, thereby overcoming present bias and inertia.
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