Workplace sidecar saving in action
By Annick Kuipers, Jo Phillips, Will Sandbrook & Emma Stockdale
As a concept, sidecar saving is designed to work with human cognitive and behavioural biases, by sequencing people’s saving to boost their financial resilience – by first, in the short term, building liquid savings, and then, for retirement, increasing contributions to pension saving. We knew immediately that this idea had the potential to address two of the biggest financial challenges for low- to moderateincome households in the UK: 1) not having a buffer to cope with a financial shock today and 2) not saving enough to achieve a liveable, dignified retirement income tomorrow.
But could a sidecar saving solution be built and implemented? How would employers and employees respond to the idea? How would people use it in reality? And what impacts would it have on their financial wellbeing? These were the questions that we sought to understand when we began piloting and evaluating a sidecar saving solution for the first time in the UK. This report is a culmination of this first exploration of sidecar saving in action.
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