The ‘Save More Tomorrow’ programme tackles both of these barriers head-on by, first, auto-enrolling people onto workplace saving schemes to combat inertia. People are obviously completely free to opt back out, but, human nature being what it is 90 per cent stay on the scheme, with their inertia now working for them rather than against them. An auto-escalator then ups the contributions, not immediately but over time (the tomorrow bit). This shifted the reluctant hugely: when asked whether they would up their contributions now by five percentage points, most said no (we need the chocolate now). But when asked whether they’d commit to saving more in the future, 78 per cent said yes.
The impact of ‘Save More Tomorrow’ has been substantial. Before the programme, the average saving rate for workers in the sample was 3-5 per cent, but after four years this had increased nearly four-fold to 13.6 per cent.