Evidence type: Evaluation i
Information about the programme design and rationale
Evidence about Financial Capability outcomes for programme participants
Evidence that the Financial Capability outcomes were caused by the programme
Evidence about programme implementation, feasibility, and piloting
Evidence about relative costs and benefits of the programme
This is the second in a series of briefing papers from the ongoing trial of a sidecar savings tool called Jars. Jars was designed to help address the lack of emergency funds and also the need of many DC customers to save more for retirement. The sidecar savings model is a hybrid savings tool that combines an accessible ‘emergency’ savings account (or ‘Jar’) with traditional defined contribution (DC) retirement saving.
Savings are automatically deducted from savers’ salaries and paid into their emergency savings ‘jar’. When savers reach their savings target, the salary deduction is sent to their pension pot. If the saver takes money from their emergency savings jar, their salary deductions are diverted back to their emergency jar until they reach their target again.
Jars is available across the UK, to DC pension savers whose employer is participating in the trial. At the time of publication, participating employers included Timpson, the University of Glasgow, BT and StepChange, with more employers expected to go live in 2021.
The trial is being delivered by a partnership between Nest Insight, BlackRock, MaPS, JPMorgan Chase and delivery partners Salary Finance and Yorkshire Building Society.
This briefing paper explores early learnings about employer experience and response to the Jars savings tool. The paper considered:
Learnings were drawn from 18 qualitative interviews with employers in three categories:
Findings fell into three broad groups:
Employer responses to the Jars concept and design
Employer decision-making around offering Jars
Implementation of Jars and employee engagement
Annick Kuipers, Jo Phillips and Will Sandbrook, Nest Insight;
Victoria Foreman, Emily Fu, Isabel Gill, Carol McNaughton Nicholls and Phoebe Ward, BritainThinks;
Roxana Prisacaru, the Money and Pensions Service (MaPS)