Using behavioural interventions to address the inadequacy of retirement provision in the UK

Addressing the inadequacy of retirement provision has arguably become the biggest socio-economic challenge facing the UK, as the aspiration to generate a good financial outcome to and through retirement typically fails to meet the reality by some margin.

However, moving from a position of inadequate to good retirement outcomes is stymied by a number of structural and deeply engrained behavioural impediments to informed decision making, many of which can be addressed by applying relatively simple behavioural insights and interventions.

Three behaviourally-focused thought papers consider the cognitive barriers to inaction and poor decision making and how they can be overcome, if policymakers and the pensions industry are to help people better help themselves pre, at and in retirement.

  • Paper One: Is your default fund fit for purpose? Are we setting retirees up for failure by default?

Addressing impediments to good investment decision-making and the role of fit-for- purpose default funds

  • Paper Two: Mind the gap: Overcoming the cognitive barriers to saving for retirement

How behavioural insights and interventions can improve savings levels and coverage

  • Paper Three: Committed, Disengaged, Suspicious or Falsely Secure: What type of pension saver are you?

Four types of pension saver and the solutions needed for each to achieve better retirement outcomes

The three papers are available for download at the links below.

Chris Wagstaff is Head of Pensions and Investment Education, Columbia Threadneedle, and Senior Visiting Fellow, Finance Faculty, Cass Business School.