Shlomo Benartzi uses behavioral economics to study how and why we plan well for the future (or fail to), and uses that to develop new programs to encourage saving for retirement.
Shlomo Benartzi studies behavioral finance with a special interest in personal finance. He is co-founder of the Behavioral Finance Forum (www.behavioralfinanceforum.com), a collective of 40 prominent academics and 40 major financial institutions from around the globe. The Forum helps consumers make better financial decisions by fostering collaborative research efforts between academics and industry leaders.
Benartzi’s most significant research contribution is the development of Save More Tomorrow™ (SMarT), a behavioral prescription designed to help employees increase their savings rates gradually over time.
“Self-control is not a problem in the future. It's only a problem now when the chocolate is next to us.”
“When you get your driving license [in Austria], you check the box if you do not want to donate your organ. Nobody checks boxes. That's too much effort. One percent check the box.”
“Loss aversion kicks in when it comes to savings. … Mentally and emotionally and intuitively, [I] frame savings as a loss because I have to cut my spending.”