Behavioural Insights for Pension Policies
Behavioural Insights for Pension Policies

Author(s): Stanislav Dimitrov
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Business Economy / Management, Sociology, Economic policy, Welfare systems, Welfare services, Socio-Economic Research
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: behavioural economics; pension policies; auto-enrolment; social nudge
Summary/Abstract: Bulgaria is facing significant challenges to the development of the pension system in the country. The ageing population in Bulgaria, the decrease in the relative share of the working population, the growing costs for pensions and the increasing deficit in the Pension Fund of the State Social Insurance, the results from the saving in supplementary pensions require measures to increase the participation and engagement in the funded plans. The research seeks answers to questions like how the lessons from the behavioural economics can be used for improved pension policies that lead to increased savings in supplementary pension plans. The analysis concludes that it is necessary to apply the behavioural insights in pension plan design and to maintain systematic measures based on the implications of the cognitive biases in order to improve and develop the pension system in Bulgaria. Among these measures are the auto-enrolment, increased role of the employers and the labour unions, tax reliefs, the EU label products, digital solutions, nudge orientated initiatives, auto-escalation and roundapps, and others.

• Details
• Contents