A 401(k) match can be an unintentional anchor"Anchors" can be intentional or unintentional, said Klontz, a member of CNBC's Advisor Council.
A 401(k) match can serve as an unintentional anchor.
Companies choose the respective structure of their 401(k) match — and that structure may inadvertently influence a worker's savings rate.
For example, a company may opt to pay a match worth up to 3% of a worker's salary.
Encouraging investors to start with a micro-investment "leads to lower wealth accumulation in this brokerage account due to anchoring bias," according to the paper.
Persons:
Klontz, they'll, Grill, Tim Vipond, Itzkowitz
Organizations:
Companies, Google, Corporate Finance, Bank, Getty, Puerto, CFI Education
Locations:
Hawaii, Puerto Rico