Academic Scientific JournalsBEHAVIOURAL ECONOMICS AND VOLUNTARY PENSION PARTICIPATION: A COMPARATIVE ANALYSIS OF ITALY, POLAND, THE UK AND NEW ZEALAND
DOI:
https://doi.org/10.26881/wg.2025.1.09Keywords:
automatic enrollment, nudges, choice architectureAbstract
Purpose – This article investigates the effectiveness of behavioural economics tools in increasing participation in voluntary pension programmes, explicitly focusing on automatic enrollment, default contribution rates, tax incentives, and behavioural nudges. The study aims to: (1) analyse how automatic enrollment influences participation rates across different countries, and (2) examine how trust in financial institutions and financial literacy moderate the effectiveness of these behavioural interventions.
Methodology – This study adopts a comparative approach, examining four countries that have implemented or experimented with auto-enrolment and other behavioural interventions—Italy, Poland, the United Kingdom, and New Zealand. The research draws on existing academic literature, policy reports, and empirical studies to outline each system’s structure, the influence of cultural and institutional contexts, and the interplay of financial literacy and trust in shaping saving decisions.
Findings – The findings suggest that automatic enrollment can significantly increase pension participation rates, particularly when reinforced by sound regulatory policies, transparent governance, and initiatives to enhance financial literacy. However, trust in governmental and financial institutions emerges as a crucial moderating factor; lower trust often translates into reduced uptake of voluntary schemes. Behavioural nudges—framing, choice architecture, and matching contributions—prove pivotal in guiding individuals toward more proactive retirement savings.
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