Page 19 - Savings Psyche
P. 19

Worried Wendy

Demographics

Average Age: 	                   39

Gender: 	                        Male (44%); Female (56%)

Average annual salary: 	         £23,000

Children U18 living at home: 	   37%

Own and occupy own home: 	       42%

Who is Worried Wendy?

Worried Wendy is characterised by financial concerns, both in the long and short term. Doubt is a common feature,
as is the tendency to agonise over financial decisions. Because Wendy is statistically more likely to be a renter, she
does want to get on to the property ladder. However, saving spare cash is limited by credit card payments and living
expenditure. On a social level, Wendy is ethical, with a strong belief in gender equality, family over career and the
benefits of being surrounded by people from different cultures and backgrounds.

What do employers need to know?

Wendy approaches saving with a ‘mental accounting’ approach, so a savings vehicle must have a clear and specific
purpose. Remembering that will be the key to getting past the agonising that delays financial decisions. Shock
tactics could work, using framing, modelling tools and referencing to highlight what a person in retirement needs and
Wendy’s position in relation to those needs. Basic financial education may also be necessary, perhaps to direct her
towards a limited set of choices, including the LISA (particularly for those under 40 who still have home ownership
aspirations). In the initial stages, default opt-in strategies would help to get saving started, followed by nudges to
increase at key times, such as the anniversary of signing up.

Four key traits:
71% are motivated to save for a holiday (pension is a savings motivation for just 42%)

Almost half (43%) feel they have a lack of knowledge and information about saving

39% save to buy their first home

61% are worried about their financial future

19 The savings psyche of the UK
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