The Save More Tomorrow plan invites participants to commit themselves, in advance, to a series of contribution increases timed to coincide with pay raises. By synchronizing pay raises and savings increases, participants never see their take-home amounts go down, so they don’t view their increased retirement contributions as losses. Once someone joins the program, the savings increases are automatic, using inertia to increase savings rather than prevent them. When combined with automatic enrollment, this design can achieve both high participation rates and increased savings rates.
