Are financial incentives effective tools to increase participation in and contributions to retirement savings plans?

This chapter examines whether financial incentives are effective tools to promote retirement savings. It reviews the empirical and non-empirical literature analysing the impact of tax and non-tax financial incentives on the way individuals save for retirement. In particular, it assesses whether individuals increase their participation in, and contributions to, retirement savings plans as a response to financial incentives, and whether this is achieved through an increase in savings or a reallocation of savings.