Context

This research examines the results from a series of four experimental (rather than real world) studies. It aimed to test the hypothesis that if people are better able to imagine and emotionally relate to their ‘future-self’ it will increase their ability and willingness to resist spending on their current selves and instead save for the future.

The study

Researchers aimed to test whether they could increase the likelihood of people choosing to allocate money to a retirement savings fund rather than to immediate spending priorities or shorter-term saving in a hypothetical task by requiring them to view and engage with computer-generated, artificially-aged images of themselves (their ‘future selves’).

Specifically, the four studies involved:

• : a group of 50 US students were shown a digital representation of their current selves in a virtual mirror and another group were shown a version of their future-self (aged-70). Participants were told to imagine that they had just unexpectedly received $1,000 and were asked to allocate it among four options (which included ‘invest in a retirement fund’).
• a group of 21 US students were shown either their own aged avatar or another participant’s aged avatar, and then asked to answer questions in response to hypothetical scenarios about short versus long-term financial rewards and retirement spending.
• a group of 42 US students were photographed making happy, sad and neutral facial expressions. Half the group
• a group of 40 US adults aged 18 - 35

Key findings

The studies found impact in relation to the following outcomes:

In all four studies, participants who interacted with their virtual future selves exhibited an increased tendency to say they would save for retirement when presented with a hypothetical scenario. Specific findings were:

• Study 1: participants shown their future selves allocated more than twice as much money to the retirement account ($172 on average) than participants who were exposed to their current selves ($80 on average).
• Study 2: participants shown pictures of their own future-self had increased savings in both short and long-term financial decision-making tasks compared with those shown pictures of another person’s future-self.
• Study 3a: participants shown pictures of their future-self allocated a significantly higher percentage of pay to retirement than participants shown the current self-images.
• Study 3b: participants shown images of their future-self allocated a significantly higher percentage of pay to retirement than participants shown their current-self.

Points to consider

The researchers acknowledge the possibility that the experiments were successful in part because they were more entertaining and engaging than traditional approaches to encouraging saving for retirement. They cite other evidence that suggests consumers are more likely to follow through on self-control tasks that are fun and engaging.

All results were tested for statistical significance. However, the studies involved very small sample sizes, and were acknowledged by the researchers themselves to provide only preliminary evidence of the effectiveness of this type of intervention.

The report states that a better understanding of the underlying cognitive processes involved in decision-making around retirement saving would help to inform future interventions aimed at increasing retirement saving behaviour.

Full report

Increasing saving with 'future self' computer aged photos - full report