IDB Launches Initiative to Promote Savings for Retirement in Latin America and the Caribbean
The Inter-American Development Bank (IDB) has launched the Retirement Savings Laboratory, a project that seeks to increase the number of people saving for retirement in Latin America and the Caribbean.
According to the IDB, most workers in Latin America and the Caribbean are not saving for retirement, which will make it difficult for them to have a good life when they reach old age, especially for low-income and independent workers.
“The main causes of under saving for retirement are problems in the way labour markets function, the design of pension systems, and the psychological barriers inherent to human nature. This explains why, although the surveys show that workers in the region want to save, few can do so,” the IDB said.
In order to encourage more workers in the region to save for their retirement, the Bank has launched the initiative that seeks innovative ways to encourage savings through interventions based on behavioural economics and the use of new technologies.
Photo courtesy of Juan Felipe Rubio.