MDRC | AutoSave
We worked with MDRC and the New America Foundation to design, pilot, and analyze an employer-based savings plan that applies insights from behavioral economics to influence savings decisions. This model uses payroll deductions to divert a portion of post-tax wages into a savings account, providing fully liquid savings to meet short-term needs or become the basis for longer-term asset accumulation. It also provides opportunities to increase attachment to mainstream financial services offered by banks and credit unions. After the implementation, we facilitated a convening of national policy experts from academia, research, and policy organizations; the funder community; government; and financial services companies to assess findings and propose directions for further research. We are currently engaged with MDRC and New America to explore the feasibility of an opt-out program design that will default employees into the plan in an effort to improve savings rates.