The report is the culmination of a research programme begun in 2010 to explore the role of savings in financial prosperity. It contains an article from Robin Bew, chief economist and editorial director of the Economist Intelligence Unit, essays from nine thinkers who took part in a roundtable debate on savings in October 2010 and a short report exploring the business world’s view of what is the right balance between policymakers, corporates and individuals in supporting savings, based on a survey of over 800 business leaders from around the world and in-depth interviews.

Our prosperity depends on how we save, when we save and why we save. More than any other issue, the world of savings links the big macroeconomic and political debates of our time with the specific and everyday concerns of individuals and companies. It links high politics with culture and psychology; local markets with global economic imbalances. It affects our livelihoods, our political debate and the development of society worldwide.

It is these reasons that make saving such an important subject for research, but evaluating all the associated issues is a significant challenge. The Economist Intelligence Unit’s chief economist and editorial director, Robin Bew, outlines a number of important aspects of savings and prosperity and argues that two key issues currently stand out: global imbalances, and retirement provision in an age where so many countries are home to a dramatically ageing population. His article, ‘The savings health of nations’, follows this preface.

To advance the latest thinking in this vitally important area and better understand the challenges and opportunities in supporting saving and prosperity globally, we enlisted the help of nine thinkers to form the Future Prosperity Panel. Drawn from a range of disciplines, representing a variety of global perspectives, the nine panel members met at an event in London in October 2010, hosted by Aviva CEO Andrew Moss and chaired by The Economist’s capital markets editor Philip Coggan. The Future Prosperity Panel considered the roles of individuals, business and policymakers as they sought answers to the questions: Why do some save more than others? What are the consequences of their decisions? And how can we change?

After the initial debate, the thinkers were challenged to drill deeper into their areas of expertise to work towards solutions. Using insights from public policy, business and behavioural economics, they considered new approaches to improving prosperity and promoting responsible saving. Essays detailing their proposed solutions form the bulk of this report, but here is an overview of their main suggestions:

• Jane Fuller, co-director of the Centre for the Study of Financial Innovation  empower savers and bring them closer to their money through ‘do it yourself’ saving options; incentivise savers by connecting investments with causes they believe in
• Carl Honoré, journalist and author – put the fun into finance by translating the qualities of gaming – interactivity, virality, instant gratification and competition – to product development
• Alain de Botton, philosopher and author – rebrand savings by using advertising to reconnect it to its social benefits and lose its associations with meanness
• Diane Coyle, economist, Enlightenment Economics – create simple savings products with clear information, which prioritise customers’ long-term security; boost financial literacy; simplify regulation
• Rama Bijapurkar, consumer behaviour expert and author – create financial products suitable for emerging markets; remodel independent financial planning and rethink individuals’ financial risk more holistically
• Paweł ´Swieboda, president of demosEUROPA – simplify and improve the pension system at an EU-level to boost portability and improve transferability and transparency
• Simon Tay, chairman of the Singapore Institute of International Affairs – nurture Asia’s emerging middle class with policies of inclusive growth; harness savings to develop infrastructure and increase investment in human capital
• Ann Pettifor, executive director of Advocacy International – enable central bankers to regulate credit creation and set lending rates; support savers in making economically productive investments with higher rates of return; reconnect the financial system with the real economy
• Matthew Taylor, chief executive of the Royal Society for the Encouragement of Arts, Manufacturers and Commerce – foster a new culture of saving by redirecting tax incentives to the less well-off; explore ways of increasing savings returns and bringing down fees; and get children into the savings habit early with school-based accounts.

And to gain an additional perspective on the issues, a survey of the Economist Intelligence Unit’s Opinion Leaders’ Panel explored the business world’s view of what is the right balance between policymakers, corporates and individuals in supporting savings. Over 800 business leaders from around the world gave their views, which are analysed in the article ‘Building a new social contract’ towards the end of this report.