How Impulse Spending Became Impulse Saving (For Retirement)
In this interview, John Sullivan speaks with Jose Anaya from EvoShare about an innovative approach to helping people save for retirement through cash back rewards. Traditionally, cash back programs incentivize consumer spending by offering points, miles, or rebates. EvoShare flips this concept on its head by channeling those rewards directly into individuals’ 401(k) plans, effectively turning “impulse spending” into “impulse saving.”
The idea originated from EvoShare’s CEO, Eugeny Prudchyenko, who was inspired by the concept of AmazonSmile (where purchases support charities). Seeing a Prudential billboard that read “The best donation is a donation to your retirement,” he envisioned applying that model to retirement savings instead of charities.
Jose highlights how this approach taps into the growing field of behavioral economics, using the same psychological nudges that drive impulsive purchases to encourage automatic, behaviorally driven savings. He explains that early reactions to the concept were skeptical, with many wondering how it was even possible. However, industry insiders and influencers have since rallied around the idea.
EvoShare has ensured their platform complies with Department of Labor (DOL) regulations and has already launched integrations with major payroll platforms like Paylocity, with more integrations (including record-keepers) on the way.
Jose concludes by emphasizing the significance of this solution for low-income families—people are spending anyway, so why not use that spending as an opportunity to build financial security? EvoShare’s mission is to turn everyday purchases into meaningful retirement savings for employees.
