Americans aren’t saving enough for retirement. Wharton’s Katy Milkman explains how behavioral nudges can motivate people to put away more money for the future.
“We ran this experiment, and what we found is that when we invited people to begin saving after a fresh start date, and we compare what happened to people’s savings rates who were invited to save now at an equivalent time, but without that fresh start date call out, we see more savings, significantly more savings, over the next eight to nine months… depending on how you model it, a 20 to 30% increase in the next eight months savings among the population that is invited to start saving after a fresh start date.”