There is no conflict of interest.
Highlights
- The study's objective was to examine the impact of information framing on knowledge of the Retirement Earnings Test (RET) rule.
- The study used a randomized controlled trial that assigned individuals to one of three treatment groups or the control group. The primary data source was an online questionnaire with true/false questions and scenario vignettes. The authors used statistical models to compare the outcomes of treatment and control group members.
- The study found that individuals in the treatment groups had a significantly higher rate of correct answers regarding key aspects of the RET compared to individuals in the control group.
- This study receives a high evidence rating. This means we are confident that the estimated effects are attributable to informational framing, and not to other factors.
- This page has been updated to comply with Executive Order 14168.
Features of the Study
The Retirement Earnings Test (RET) rule applies to adults aged 62 to full retirement age (FRA) who are eligible to receive Social Security (SS) benefits. This rule states that if an individual earns more than a specified amount, a portion of their Social Security benefits will be withheld. The explanation of the RET rule has not been clear, leading some individuals to retire earlier than necessary due to fear of receiving lower retirement benefits if they wait.
The study was a randomized controlled trial that examined the impact of informational framing on knowledge of the RET. Participants were recruited online through the Understanding America Study (UAS) Internet panel, which included 3,129 panel members. The participants were randomized into one of three treatment groups or the control group. Participants in the first treatment group (T1) received a short and simple description of the RET rule that used text from the Social Security Administration website. Participants in the second treatment group (T2) received a more detailed narrative description of the RET rule with an example of how RET would affect SS benefit amounts for an individual. Participants in the third treatment group (T3) received the same detailed information as those in T2 however the example of how RET would affect SS benefit amounts for an individual was presented as a visual illustration rather than in narrative form. The participants in the control group were not provided information on the RET.
Participants in the treatment groups received the RET information and then received an online questionnaire to assess their knowledge of the RET rule. The questionnaire included five True/False items, a series of questions about a hypothetical character, and questions based on two brief vignettes about people making choices related to work and benefits. Participants in the control group only receive the online questionnaire. The authors used statistical models controlling for sex, age, race, ethnicity, education level, and labor force status to compare differences in the outcomes between the three treatment groups and control group members.
Findings
Knowledge and skills for financial decision making
- The study found that individuals in all three treatment groups performed significantly better than individuals in the control group. Participants in the treatment groups had higher rates of correct answers on four true/false questions and scenario vignette questions about the RET’s impact on SS benefits. However, there were no significant differences between the three treatment groups.
- The study also found that the control group performed significantly better on one true/false question and one vignette question in comparison to T1 and T2.
Considerations for Interpreting the Findings
The authors did not explicitly provide information to calculate attrition. They did not provide sample sizes for each of the treatment or control groups. However, the authors conducted the online experiment at one timepoint, implying no attrition. Also, the authors do not provide a key for readers to understand how various numbers of asterisks (*) correspond to different levels of statistical significance. While readers can see that there are significant results, they cannot determine the exact level of significance for those results.
Causal Evidence Rating
Research Guidelines
Review Protocol: Living Systematic Annual Search and Review Protocol
Review Guidelines: Causal Evidence Guidelines