Automate Savings Growth with Future-Pay Hikes

At FinTrust, low enrollment and tiny contributions plagued the 401(k) plan. Participants would nod in seminars about saving more—but not sign up. Recognizing self-control weaknesses, HR piloted a Save More Tomorrow program. New hires ticked a box promising to raise deferrals by 1% at each annual review.

Within months, 90% stayed enrolled, and average deferral rates doubled in three years. Employees never felt a pinch because raises absorbed the new contributions. The inertia that once blocked them now served their future selves.

Bonus: turnover costs fell as more workers stuck around to capture raises and watch savings grow. FinTrust’s CEO remarked, “We didn’t reduce take-home pay. We increased financial security without any drama.”

Behavioral science calls this commitment device a ‘future-self nudge.’ By tying a small promise to an anticipated salary bump, it harnesses both the Reflective System’s planning power and the Automatic System’s love of repeat patterns. The result: sustained higher savings with zero hassle.

You might start by drafting a simple form asking, “Will you boost your savings when you next get a raise?” Then automate payroll to honor that pledge so you never actually feel the cut. Finally, send a brief congratulatory note each time the bump occurs. Give it a try next payday.