Save More Tomorrow: Practical Behavioral Finance Solutions to Improve 401(k) Plans

by Shlomo Benartzi

One of the world’s top experts in behavioral finance offers innovative strategies for improving 401(k) plans .
Half of Americans do not have access to a retirement saving plan at their workplace. Of those who do about a third fail to join. And those who do join tend to save too little and often make unwise investment decisions.  In short, the 401(k) world is in crisis, and workers need help. Save More Tomorrow provides that help by focusing on the behavioral challenges that led to this crisis inertia, limited self-control, loss aversion, and myopia—and transforms them into behavioral solutions. These solutions, or tools, are based on cutting edge behavioral finance research and they can dramatically improve outcomes by, for example, helping -Save, even if they aren’t ready to do so now, by using future enrollment. -Save more by showing them images of their future selves. -Save smarter by reshuffling the order of funds on the investment menu.
Save More Tomorrow is the first comprehensive application of behavioral finance to improve retirement outcomes. It also makes it easy for plan sponsors and their advisers to apply these behavioral tools using its innovative Behavioral Audit process.

Genres: Business, Finance

288 pages, Hardcover

First published April 1, 2012

Reviews

[Wilson Sundvold · Rating 5 out of 5]

As a 401k advisor, this book does a great job of backing up our beliefs. People need to start saving for retirement earlier, they need to save more, and they need to have a smarter investment plan. All too often, most of our clients have participants who done understand the importance of the above 3 points.

To any plan sponsor out there, or 401k advisor to the plan, I highly recommend this book as a resource and to explain the importance of why Great plan design can immensely help your participants.

[Ashley Blathras · Rating 3 out of 5]

This book is great if you are just starting on your retirement savings journey. I would advise if you are not a corporation or someone who runs a business, it can get quite mundane at times because some of the concepts are more geared towards them. Also, if you are well into your retirement journey, this is more on the beginner friendly side.

[Anna · Rating 5 out of 5]

Does it’s job. I didn’t know anything about behavioral finance before reading this book and now I do. I find the concepts fascinating, though I imagine the technology described would be a bit more updated if the book had been written today.

[Micah Frederick · Rating 2 out of 5]

This book had some good information in it, but had way too many analogies.