Tax-favored savings plans underutilized by households, impacting financial decision-making.
Dutch tax-favored savings plans offer great benefits, but not everyone takes advantage of them. A study looked at why some people don't participate. They found that those with low liquid wealth are less likely to join and may use other savings instead. Smokers are also less likely to have these plans, suggesting they may not be making the best financial choices. This challenges the idea that everyone always makes rational decisions about money.