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New Ways to Make People Save: A Social Marketing Approach

New Ways to Make People Save: A Social Marketing Approach

Annamaria Lusardi, Punam Anand Keller, and Adam M. Keller

Chapter:
(p.209) Chapter Seven New Ways to Make People Save: A Social Marketing Approach
Source:
Overcoming the Saving Slump
Author(s):
Annamaria Lusardi
Publisher:
University of Chicago Press
DOI:10.7208/chicago/9780226497105.003.0008

This chapter uses a social marketing approach to develop a planning aid to help new employees at a not-for-profit institution open and contribute to supplementary retirement pensions. It demonstrates that it is important to incorporate concepts of marketing and psychology into economics to both understand and exploit differences in individual behavior. A sharp increase in supplementary retirement accounts is observed after the implementation of the program: the election rate more than tripled in a thirty-day period and doubled in a sixty-day period. The survey also highlights three key barriers and shows how they posed greater saving difficulties for young female and older male employees. The role of insufficient income is recognized. The planning aid points that very low amounts are needed to get started and open an account.

Keywords:   social marketing approach, planning aid, employees, retirement pensions, psychology, economics, saving

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