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Shlomo Benartzi, UCLA professor, on how people can use psychology to save more money for their retirement.
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-- -- -- question for you can psychology help Americans save for retirement my next guest says yes and his -- -- to be used by companies like Microsoft and all -- to boost employee savings.
Joining me is UCLA -- -- of of announcing chief behavioral economist at.
-- on his global investor -- all flow of the book save more for tomorrow.
Hey we'd -- love to save more professor but look in these times is pretty hard to put more money away for his savings as much as you'd like to how do we use psychology to save more money.
Excellent question we've actually worked over the years both -- both vessel which have they learned many other academics we -- -- On the helping people who supply the -- to be to pay -- -- To use safe mole.
In one all of these studies we had the mid -- company.
-- Manufacturing company with lower paid the employees.
Who all told us they cannot save -- to date.
So the solution was waiting to it -- -- I ask people to save mall to mall.
We head eighteenth the -- to all from the same employees who was struggling to save more to being.
Home meet.
To saving mall in the future.
And then we just made it happen.
The week and a half years -- That you employees squad won't pull those saving weights com -- -- in namely Kuwait to 3%.
To almost 14%.
So that that -- key is here people don't like to make.
Cuts -- -- spending so as some of the painful thing so by human nature we avoid it and just don't do it problem.
You say and I read your notes that you believe it's really not down to the individual though it's up to the company to push.
Their employees into biggest savings.
Yet and I think it's -- really to pool -- it's just to empower them to make it easy you know for them.
If you think about you'll point that people don't like to save because they have to cut today those spending it's something we call most of -- -- If you think about -- we can actually helping -- is an empowered and empowering them.
By all filling them it for one.
When they can save mall when they get -- -- anyways there will never have to cut those spending they're gonna save mall when they make more money.
And -- Petroleos in the US how -- need -- 60%.
-- the -- and -- those all Philip domestic saving increases as part of the full one K plan.
And I think we have to work on the remaining 40%.
In really empowering employees by bitter designing.
-- -- -- -- -- Very interest staying well we appreciate you joining us -- the Nazi about Allianz global investors professor thank you very much a very good very good thing that you need.
That could suppress the nation another big problem people selling anonymous signal money -- put it off because it's not something one loves it means you'd have.
Less money -- you talk -- that is.
