James Choi, professor of finance at the Yale School of Management, discusses the transformative impact of automatic enrollment on retirement savings and household finances. While participation rates soar, his research uncovers unexpected consequences, such as increased borrowing and shifts in creditworthiness. Choi examines how these policies shape broader financial behaviors, emphasizing the need for thoughtful defaults and innovative policy changes, like liquid savings options, to balance short- and long-term financial security.
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