Turn on the good option for users, and let them turn it off
Updated: Oct 11
An automatic yes changed behavior far more than information did.
The study. Two economists studied a large US company that changed its retirement plan. Before the change, staff had to sign up. After the change, new staff were in the plan unless they left it.
The finding. Plan membership among new staff went from 37% to 86%. Most people also kept the default savings rate of 3%, even when a higher rate was better for them.
Why it matters. People agree that saving is good, but they delay the action. Automatic enrollment removed the delay. The study also shows a risk: people keep a weak default too.
The takeaway. Turn on helpful features for users by default, with a clear way to turn them off. Choose the default level with care.
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