Can pension fund design increase pension savings? Evidence from a conjoint experiment in six European countries

Abstract

In times of welfare state retrenchment, occupational pension savings become essential for ensuring adequate retirement income. We know that individuals’ socioeconomic characteristics and a country’s characteristics matter for the level of occupational pension plan (OPP) savings. However, there is a gap in knowledge regarding how pension fund design affects pension savings. This paper fills this gap by examining the influence of OPP characteristics on the willingness of individuals to increase their contribution level. We analyze a conjoint experiment embedded in an online representative survey conducted in Austria, Denmark, Germany, Ireland, The Netherlands, and Spain. The plans differed across seven attributes. The results indicate that (i) past financial returns, (ii) the structure of the OPP board, and (iii) board responsiveness to participants’ demands have the strongest effects, followed by current (iv and v) contributions by employees and employers and (vi) environmental, social, and governance (ESG) policies. The type of (vii) tools used to inform participants proves unrelated to OPP selection.