Pointing out that “planparticipants now typically make their investment choices on ascreen rather than on paper,” Shlomo Benartzi writes about anexperiment he and Richard Thaler conducted. (Photo:Shutterstock)

It seems counterintuitive, but the design of the website usedby participants to makeinvestment choices as well as other decisions in their retirement plans can have anoutsize effect on those choices — and on the outcomesfor those retirement savers.

A paper by Shlomo Benartzi, UCLA professor andsenior academic advisor at the Voya Behavioral Finance Institutefor Innovation, finds that such factors as how many lines areprovided for investor choices of funds can result in vastlydifferent results from, say, four to eight.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.