2This can be summarised as 10k-20k-30k for singles and 15k-30k-45k for couples.
3OECD (2019), Pensions at a Glance 2019: OECD and G20 Indicators, OECD Publishing, Paris. p.155.
4Good retirement outcomes are also dependent on how those contributions are invested and the choices made at and in retirement.
5The DC Future Book 2020. The PPI in association with Columbia Threadneedle Investments. September 2020. pp.20-23.
6The DC Future Book 2020. Op.cit.
7https://www.resolutionfoundation.org/publications/building-a-living-pension/. January 2021.The report sets out a framework through which a ‘Living Pension’ for low to middle income earners could be calculated
8The Resolution Foundation. op.cit. pp8-9.
10THowever, despite conventional wisdom, educating adults on pensions typically has little, if any, long-term effect in changing behaviour. This is principally because contemporary behaviours, habits and choices are largely informed by
and anchored to early life upbringing and experiences. The exception to this is just in time education imparted at those pivotal moments when people are most receptive to engagement.
11As embodied in auto enrolment and freedom and choice.
12One particularly successful subtle behavioural intervention has been auto enrolment, which in using the inertia associated with getting people to save into a pension, requires them to opt out, rather than opt in. See: Mind the gap:
Overcoming the cognitive barriers to saving for retirement. Chris Wagstaff. Columbia Threadneedle Investments. 2016. https://www.columbiathreadneedle.co.uk/media/10116793/en_mind_the_gap_paper_two.pdf
13See: EAST. Four simple ways to apply behavioural insights. The Behavioural Insights Team. 2014.
14Anchoring is when people latch onto a wholly irrelevant number that comes easily to hand when they are in unchartered territory and use it as a reference point in their decision making
15TSee: Hal E. Hershfield, Daniel G. Goldstein, William F. Sharpe, Jesse Fox, Leo Yeykelis, Laura L. Carstensen, Jeremy N. Bailenson. Increasing Saving Behavior Through Age-Progressed Renderings of the Future Self. Journal of Marketing
Research Vol. XLVIII (November 2011), S23–S37. http://vhil.stanford.edu/mm/2011/hershfield-jmr-saving-behavior.pdf.
16See: Richard H. Thaler, University of Chicago and Shlomo Benartzi, University of California, Los Angeles. Save More Tomorrow: Using Behavioral Economics to Increase Employee Saving. Journal of Political Economy, 2004, vol. 112,
no. 1, pt. 2.
17This probability insensitivity is called the affect effect.
18Golden Rules of Communication. Talking about pensions with a new generation of savers. NEST. 2014.
19 For more detail on how behavioural interventions can be used to overcome the key cognitive biases that prevent greater levels of saving, see: Wagstaff (2016). Op.cit, https://www.columbiathreadneedle.co.uk/media/10116793/
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