Behavioral Insights into Financial Planning: A Gradualism Approach to Will-Making

This study presents evidence from a field experiment investigating the effectiveness of a novel “gradualism” approach to addressing emotionally motivated procrastination in a real-world setting. Participants in retirement workshops were randomly assigned to draft and dispose of a virtual will during the workshop, serving as a preliminary step toward completing an actual will. Our results indicate that this gradualism approach increases the likelihood of completing an actual will within 150 days by 8 percentage points compared to those who did not draft a virtual will. Given the emotionally challenging nature of will-making — requiring contemplation of death, relationships, and personal achievements — the notable effect size demonstrates the potential of gradualism to mitigate procrastination in emotionally charged financial decisions. These findings have broader implications for financial planning, suggesting that similar strategies could be employed to encourage long-term financial behaviors such as retirement savings and investment planning. By breaking down complex financial tasks into smaller, manageable steps, gradualism can enhance engagement and completion rates, addressing issues of financial illiteracy and preparedness highlighted in the literature. Our study contributes to the field of behavioral finance by providing evidence on the effectiveness of gradualism in improving financial decision-making and preparedness.