An extraordinary 41% of Mexico’s elderly currently live in poverty. Working with Ideas 42, who have had the honor of systematically applying their behavioural science across a major government financial system, which is the first of its kind in Mexico, we have incorporated our ageing software for those using the app to be able to visualise their future selves.
Saving for retirement is a challenge for most people. It feels far in the future, and it’s natural to focus on more immediate financial needs. That’s not to say we don’t recognize the importance of setting up a retirement account and starting to save early, but even with that knowledge it’s easy to be deterred by unpleasant or complicated tasks, difficult decisions, or the multi-step process for getting started.
Result! We were proud to discover that using the aging photo filter increased the number of account holders who made a one-time contribution in August by 13%, and raised the average amount contributed in that month by 1,327 MXN (from an average amount of 3,063 MXN).30 Taking into account the greater number of contributors and size of the contributions made, in aggregate our intervention increased the total amount saved among account holders in the treatment group by 54% (1,675,974 MXN) compared to the control (1,087,422 MXN). Including the aging filter along with savings messages induced not only more contributions, but also much larger ones.