Page 5 - Savings Psyche
P. 5

How the people of Britain save money
A new investigation into pensions, ISAs
and workplace savings schemes

The savings psyche of the UK is a new report, commissioned       is required in order to end the decision-making paralysis,
to investigate how those in employment in the UK think           address the shortfall and ensure that employers are able to
about savings, the decisions that they make (or, in              take a responsible and active role in the financial well-being
many cases, do not make), the challenges associated              of their workforce.
with employee pension contribution schemes and what
might be done to solve them. It reveals that the amount          The savings psyche of the UK is based on in-depth new
of choice around savings initiatives has led to millions         research on a cross-section of the UK workforce. However,
becoming overwhelmed and therefore making no decisions           unlike previous reports into savings and pensions, it takes the
whatsoever, giving rise to a ‘decision-making paralysis’. This,  investigation further through detailed analysis, undertaken
in turn, has caused a serious savings shortfall, based on a      by the University of Nottingham, which incorporates insights
disparity between the amount people should be saving and         offered by behavioural economics and other theoretical
the amount they are saving.                                      perspectives on consumer behaviour and decision-making.
                                                                 By doing so, The savings psyche of the UK is able to delve
This report describes how saving affects different social        further into issues affecting savings, closely examining why a
groups in vastly different ways, introducing a set of            choice paradox is causing a decision-making paralysis, how
personas that will enable the conversation about savings to      loss aversion is negatively affecting savings choices and how
take a more focused, consumer-centric tone. Moreover, it         employers can leverage their employees’ trust to engender a
reveals that a new way of thinking about workplace saving        step change in savings mentality.

5 The savings psyche of the UK
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