two silhouetted people on top of 3 arrows Active choice is a way of presenting a choice that requires participant engagement. (Photo: Shutterstock)

Choice architecture is the practice of influencing choice by changing the way options are presented to people. The concept was highlighted by Richard Thaler and Cass Sunstein in their 2008 book Nudge: Improving decisions about health, wealth, and happiness.  As a plan sponsor, you may frequently find yourself in the role of a choice architect. Your job is to present participants with choices: participation, savings rate, investment options, education opportunities, and more. The way you present these choices can have a substantial impact on participants’ experience and outcomes.

Active choice is a way of presenting a choice that requires participant engagement. For example, active choice enrollment requires employees to actively make the decision to participate, or not, in their retirement plan.

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