Despite good intentions, people all over the world regularly struggle to save for retirement, as many obstacles prevent individuals from contributing to their retirement funds. One way that countries and employers have attempted to increase the rate at which individuals save for retirement is by requiring citizens or employees to make mandatory contributions to their retirement savings via public and private pension systems, respectively. However, a recent analysis by the International Longevity Centre found that this is not enough (Franklin and Hochlaf 2017).
Only three out of 30 countries would be able to sufficiently deliver adequate retirement incomes to citizens using only a mandatory pension system. Thus, individuals in most countries need to contribute an additional portion of their earnings in order to have a comfortable amount available upon retirement. Given the serious costs that under-saving can impose, governments and employers alike are increasingly interested in using behavioral interventions to improve savings.