Fund assortments, gender, and retirement plan participation

Purpose – This paper seeks to promote an understanding of gender effects on retirement plan participation as a function of fund assortment size. Design/methodology/approach – A decision simulation was conducted among 349 US adults whose task was to invest in a hypothetical 401(k) retirement plan. The number of mutual funds offered for investment was varied and the effects on the incidence and extent of participation observed. Findings – The results indicate that larger fund assortments tend to reduce participation among women, but increase it among men. Research limitations/implications – Replication in other contexts and with other data sets would be worthwhile. Practical implications – To enhance retirement plan adoption/participation, financial service firms may want to tailor such plans according to gender (and other consumer characteristics) according to the present set of findings. Originality/value – First time authors are aware that the interaction between gender and assortment size is examined.