You have been hired as a consultant by a company to develop the company's retirement plan, taking into account different types of predictably irrational behavior commonly displayed by employees. Which of the following does NOT explain a reasonable plan to correct a type of irrational behavior employees might display with regard to the retirement?
1) To address irrational behavior, you could suggest that all employees have to actively enroll in the program.
2) To address unrealistic expectations about their future behavior, you could suggest that employees who choose not to enroll be given the option to be automatically enrolled after a fixed period of time.
3) To address employees' overconfidence in their ability to choose investments, the retirement plan could limit movements between different types of funds.
4) Because of status quo bias, many employees do not enroll in company retirement plans; you could suggest that all employees be automatically enrolled in the retirement plan.