Now I'm going to describe to you a study I did with Gur Huberman, Emir Kamenica, Wei Jang where we looked at the retirement savings decisions of nearly a million Americans from about 650 plans all in the U.S.

And in the mean time, personal savings absolutely plummeted.

And what we looked at was whether the number of fund offerings available in a retirement savings plan, the 401(k) plan, does that affect people's likelihood to save more for tomorrow.

Does this have cumulative effects?

What we're seeing is an uptake in the savings rate.

Savings bonds.

Yes, by the time they retire, futureless language speakers, holding constant their income, are going to retire with 25 percent more in savings.

They're savings bonds.

It's not just numbers on a piece of paper.

You know, you have this guy coming up to you.

A 1 0 U.S. Savings Bond.

This is something I call the 50 20 paradox.

What's this building?

Save your dollars bills, yo!

He's given a control that allows him to adjust his savings rate.

So we're starting to pay for things with money that we have.

So this is a timely problem.

And what I'm going to talk about today is Save More Tomorrow.

George Rutherford. What happened to him?

And how come you ain't got a job anyway?

At the same time, the Retirement Risk Index, the chance of not being able to meet your needs in retirement, has been increasing.

It's not even sustainable economically.

And slowly, slowly we're bringing it up to a moderate savings rate.

All right, Scott, forced retirement.

Voluntary redundancy?

Holding down the right flank of the OECD, all the way on the other side, is Greece.

Tom resigned.

Retired today?

There was nothing to buy, unless you wanted to buy some rivets. Right?

Because I kind of view that as a reference point.

Until we get to this point right here, where everything starts blowing up.

Let me just put it into my mattress.

Well, think about smoking, for example.

I still have some money saved! I'm prepared for hard times.

Keep something for a rainy day.

You'd rent a smaller home.

Where maybe I saved 5, but someone else borrowed 5.

Fine, until I found a resignation fax waiting for me from Andrew Blauner.

My resignation.

All personnel clear.

In an emergency you can fall back on your savings.

Put by money for the future.

Do you know what this was right here?

I don't dividend it out to the shareholders. I just keep that.

Severance pay.