Whitepaper – Plan Fiduciaries Need to Consider Impact of Digital Interface

Whitepaper – Retirement Planning Needs A Better UX, by Shlomo Bernartzi

shlomo-benartzi

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Companies are careful to consider the impact of ERISA fiduciary rules when managing their company’s 401(k) or defined contribution plan, but few are thinking about the impact of how information is displayed digitally and the impact on their retirement plan. Noted behavioral economist Shlomo Benartzi, UCLA Anderson professor, explores the issue in a Harvard Business Review article.

A vast majority of employees access their retirement plans digitally with a growing number using their smartphone. Thoughtfully redesigning the user interface can make a huge impact as evidenced by the improvements made by H&R Block on government student loans. The improved screen designed resulted in 25% more people likely to attend college. Over trading by investors focused on short term results was diminished in Israel by simply changing returns to longer term results.

Ultimately, record keepers will need to make the changes but plan sponsors should be aware and look for providers who are helping them fulfill their “digital fiduciary” obligations while improving outcomes for their employees.

Fred Barstein

Fred Barstein

Founder & Editor-in-Chief at 401kTV | TRAU | TPSU
Fred Barstein is the Founder & Editor-in-Chief of 401kTV. Fred is also the Founder and CEO of The Retirement Advisor University (TRAU), a collaboration with UCLA Anderson School of Management Executive Education and The Plan Sponsor University (TPSU).Mr. Barstein was also Founder and Editor-in-Chief of NAPA Net.
Fred Barstein
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