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Freedom and Choice in Pensions

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Freedom and Choice in Pensions

A Behavioral Perspective

Ideas42,

5 min read
5 take-aways
Audio & text

What's inside?

Not all UK citizens will be making the most of new pension options resulting from 2015 legislative reforms.

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Editorial Rating

7

Qualities

  • Applicable
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Recommendation

In the UK, legislative reforms in 2015 have resulted in the emergence of a brand-new market for pension plans and other sources of retirement income. Options have multiplied, but will investors be able to navigate the muddy waters where ambiguous information abounds and the hassle of shopping around often causes outright avoidance of the task at hand? The team at Ideas42 takes a close look at common behavioral elements associated with complex, high-stress decisions that result in people making suboptimal choices. getAbstract recommends this enlightening report to anyone affected by the recent UK reforms, as well as employers, government regulators and those interested in behavioral studies.

Summary

In April 2015, the British government enacted legislation to reform retirement options in the UK. These reforms resulted in significant changes to the British retirement income market. While the changes were designed to benefit the citizenship, behavioral science indicates that the reforms might do more harm than good.

Studies reveal that people tend to behave in specific ways when planning for retirement. Typically, people won’t explore all their options or ask for help; instead they...

About the Author

Ideas42 is a nonprofit organization engaged in studying behavioral science and consulting with clients to design solutions that solve complex problems.

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