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Freedom and Choice in Pensions
Report

Freedom and Choice in Pensions

A Behavioral Perspective

Ideas42, 2015 more...

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Editorial Rating

7

Qualities

  • Applicable
  • Concrete Examples

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.

Take-Aways

  • The study of behavioral psychology, as it relates to complex decision making, reveals that people tend to behave in very specific ways when planning for retirement. These tendencies often lead to less-than-optimal choices.
  • Misguided thinking plays a big part in why people often don’t make the best choices regarding their retirement plans.
  • The way in which people receive choices affects their ability to make complex decisions.

About the Author

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