• On average, only slightly more than four of every ten workers in Latin America and the Caribbean contribute to any social security system, so about 130 million people are working without saving for a pension. Given this situation, innovative solutions are required. The growing penetration and use of new technologies among the population, along with the development of behavioral economics (a discipline that studies the psychological factors that account for people not always making the best economic decisions) opens a new realm of opportunities for overcoming the challenge of low pension savings.
• Recent experience shows that new technologies and tools are being used in different countries, in the private sector and by some regulatory authorities, for approaching workers in a more friendly way and “nudging” them to make savings decisions they would not otherwise make by themselves. This report examines five alternatives for encouraging and promoting savings: (i) informative letters; (ii) SMS text messages; (iii) cell phone applications; (iv) digital service intermediation platforms; and (v) interactive tools that simulate future pensions.
• The reality of the pension systems in the region highlights the urgency of seeking innovative mechanisms for increasing savings. Nonetheless, the effects of each tool must be precisely assessed to determine what works and what doesn’t. Basically, mechanisms must be found that ensure that workers’ savings decisions are permanent and not just short-term.

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