Around the world, policy makers and researchers are launching a range of initiatives designed to encourage, on the one hand, short-term liquid savings, and on the other, illiquid savings for retirement. These two types of initiative are generally undertaken in isolation, often leading to a tension between liquid and illiquid savings. The implicit message is that long- versus short-term savings is a zero-sum game, where each type of savings is competing for a fixed share of individuals’ assets.
About the project
Recent work has challenged this perspective. Researchers in the US have proposed an approach that combines liquid and illiquid savings in a way that’s optimised around the needs and preferences of the saver. The argument is that an appropriate balance of liquidity will enhance people’s overall financial wellbeing, both in the short term and through into retirement.
- Who signs up to use the savings tool? What levels of participation do we see? Does it attract new savers?
- How do people use the savings tool? How much do they save? How often and why do they withdraw money from their emergency savings? And does it help them to save more for retirement?
- Does the savings tool have a positive impact on workers’ financial resilience and wellbeing?
Watch our video to find out more:
This trial is supported by BlackRock Charitable Trust, the Money and Pensions Service (MAPS) and JPMorgan Chase. The research is being led by Nest Insight, working with academics Sarah Holmes Berk, John Beshears, James Choi, David Laibson, and Brigitte Madrian as well as MaPS. Salary Finance is the trial’s savings technology partner, providing the savings tool which will be introduced in participating workplaces as ‘Jars’. Jars allows employees to set up regular payroll deductions to save money into their emergency savings jar, provided by Yorkshire Building Society, and, when they reach their savings target, to save more into their existing workplace pension. The savings tool is currently being trialled in UK workplaces: BT, ITV, StepChange, Timpson and the University of Glasgow.
BlackRock’s Social Impact team works to help make prosperity possible for more and more people around the world. Through the BlackRock Charitable Trust and the BlackRock Foundation, the team supports programmes that bring financial security within reach for those facing historic and ongoing barriers to opportunity. For more information, visit blackrock.com/corporate/about-us/social-impact
The Money and Pensions Service (MaPS) vision is: ‘everyone making the most of their money and pensions’. MaPS is an arm’s-length body committed to providing access to the information and guidance people across the UK need to make effective financial decisions over their lifetimes. For more information, visit maps.org.uk
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $3.7 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. For more information, visit jpmorganchase.com NYSE: JPM
Salary Finance is on a mission to help millions of people around the world to become financially happier and healthier. It currently helps over 3 million employees at 550+ of the UK’s largest employers. Salary Finance partners with employers to provide a range of salary-linked employee benefits, helping employees to get out of debt, start saving, advance their pay, protect their future and learn better financial habits. For more information, visit salaryfinance.com
Yorkshire Building Society is a mutual organisation, owned by its members and customers. It’s driven by social purpose and here to serve its members. It’s proud of the difference it makes to people’s lives by helping them to achieve their goals. It’s here to create long-term member value, help people have a place to call home and support them towards greater financial wellbeing. It believes that helping people with these goals is how it can make the biggest contribution to society. For more information visit: ybs.co.uk
You can find out more about the sidecar model and our research trial in the following blogs, press releases and Nest Insight publications:
- Supporting emergency saving: early learnings of the employee experience of workplace sidecar saving (PDF) Published July 2021
- Workplace emergency saving: a landscape review of existing evidence (PDF) Published July 2021
- Encouraging early indications from sidecar trial show financially ‘struggling’ and ‘squeezed’ brought into saving (Press release) Published July 2021
- Supporting emergency saving – early learnings from the employer experience (PDF) Published December 2020
- Sidecar savings trial employers share insights into their experience so far (Press release) Published December 2020
- Supporting emergency saving – policy considerations and questions for future research (PDF) Published October 2020
- Nest Insight shares early findings from sidecar savings trial (Press release) October 2020
- How will Nest Insight’s sidecar savings trial work? (Blog) Updated November 2018
- Nest Insight launches its sidecar savings trial (Press release) Published November 2018
- Liquidity and retirement savings: what’s the right balance (PDF) Published March 2018
- Liquidity and sidecar savings discussion paper (PDF) Published November 2017
- Supporting emergency saving: early learnings from the employer experience (Online event) Published December 2020
- The Jars saving tool (Video) Published October 2020
- Nest Insight’s sidecar savings trial (Video) Published December 2019
- Nest Insight’s sidecar savings trial (Video) Published December 2018
Interested in taking part?
If you’re interested in taking part, and would like to find out more, please contact Jo Phillips: firstname.lastname@example.org