If plan sponsors design retirement plans, they take advantage of naive employees and exploit features of plan design that favor themselves, to the detriment of the employees trying to save for retirement.

That's according to a paper exploring the topic written by Ryan Bubb, professor of law, and Patrick Corrigan, both of the New York University School of Law, and Patrick Warren, associate professor of economics at Clemson University.

The three say that employers have the incentive to exploit mistakes made by employees in the choices those employees make to save for retirement, and as a result employers do just that.

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