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Mar. 10, 2025

The introduction of digital pension apps significantly increases voluntary retirement contributions, with the effect most pronounced among higher-income earners and men, a new study finds.

Research published by Claudio Daminato (Lund University), Massimo Filippini (ETH Zurich), and Fabio Haufler (ETH Zurich) in examines the impact of a digital pension app rolled out in Switzerland, showing a 1.8 percentage point increase in voluntary contributions—an uptick from a baseline contribution rate of 2.8%. The study, based on Swiss pension fund data, provides empirical evidence on how financial technology affects retirement savings behavior.

“Providing access to the digital pension app has an important effect on retirement contribution decisions,” the authors write. “The overall probability of making a tax-favored contribution to the occupational pension plan increases by 1.8 percentage points following the introduction of the app.”

Ease of Use, Not Tax Incentives, Drives Uptake

To understand what drives people to save more for retirement, the researchers conducted a randomized field experiment, testing how different reminders influenced pension app usage and voluntary contributions.

Participants who had not yet registered for the app were randomly assigned to one of four groups: some received no reminder, others received a basic letter informing them about the app, a third group was told the app could calculate their tax savings, and a fourth group was reminded that the app made contributions quick and simple.

The results were clear—only those who received the ease-of-use reminder (fourth group) increased their pension contributions, while the other reminders had little to no effect. This suggests that removing obstacles to action is more effective than simply providing information about financial benefits.

“Merely receiving the letter containing a nudge toward the digital app’s ability to decrease the ‘hassle’ costs of making a contribution increases the probability of making a buy-in by about one percentage point, and the overall contributed amount by around 10%,” the authors say.

Higher-Income Earners and Men Benefit the Most

The effect of the app introduction was not evenly distributed across demographics. The study finds that men and higher-income earners were significantly more likely to increase their contributions after gaining access to the digital tool.

“We find substantial effect heterogeneity, with contribution decisions of men, higher-income earners and individuals with larger potential of tax-favored contributions responding more to the introduction of the pension app,” authors say in the study.

Policy Implications

The study adds to growing evidence that FinTech solutions can drive financial behavior, particularly in areas where transaction costs deter action. But while digital tools help those who engage with them, the findings suggest they may not be enough to encourage saving among lower-income individuals or those less financially inclined.

“Together, this evidence points toward digital access boosting total retirement contributions, rather than merely shifting their timing,” the authors conclude.

With pension adequacy a growing concern across developed economies, the study’s findings could inform how governments and financial institutions design retirement planning tools to maximize participation across all income groups.

Several countries are adopting digital pension tools to simplify retirement planning. The Netherlands has already implemented such platforms, while Germany and the UK launched "" and the "" in 2023, making pension information more accessible.