The Blackrock Foundation, the philanthropic arm of BlackRock Inc., has committed 1.5 million pounds ($2 million) to support Nest Insight, a public-benefit research and innovation center in the U.K.
The foundation reported the three year-partnership agreement will focus on using BlackRock’s Emergency Savings Initiative, launched in 2019, to help boost savings and improve financial security for millions of British households.
The Emergency Savings Initiative is funded with $50 million and has the goal of spurring “innovation that enables people to establish a stronger financial safety net.” According to the foundation, the collaboration aims to work with regulators and support employers to launch more opt-out savings plans for U.K. workers.
According to Nest Insight, its recent research demonstrates that an “opt-out approach to saving could make a significant impact on the UK’s savings gaps.” Its research found that approximately 25% of adults in the U.K. have less than 100 pounds in savings, and its opt-out pilot program indicated that 70% of workers are beginning to save.
An opt-out approach involves employees being automatically enrolled in a savings account through payroll contributions unless they choose to opt out. The foundation’s research indicated that workers save more if they are required to request unenrollment from a savings program, rather being required to sign up for one, the foundation reported.
“If they want to start saving, they don’t need to do anything,” the Nest Insight stated. “Everything is done for them. Only people who don’t want to save have to take action.”
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Tags: BlackRock, BlackRock Foundation, Emergency Savings Initiative, Nest Insight