(ALM | Benefits Pro) - Thanks to a new SECURE 2.0 provision that allows employers to offer financial incentives to start saving for retirement, participants can now earn up to $250 if they contribute to a plan for one year under a new program.
Human Interest Inc. is tapping into a psychological phenomenon with its new incentive program aimed at increasing participation in its employer-sponsored retirement plans.
Incentive programs such as frequent flier miles or cash-back rewards on credit cards are frequently effective because people are drawn to opportunities to get a deal or earn a benefit for spending money on a certain product or with a particular brand.
Dosh, a company that provides retail cash rewards, found that 82% of its users prioritize special promotions, discounts or cash back when choosing where they’ll shop.
People have negative feelings about parting ways with their hard-earned money, and incentive programs can help create positive feelings to counteract that.
By Kristen Beckman
June 12, 2023
