'The Impact of Behavioural Economics on Financial Decision Making’
We all believe that in making decisions we have assessed the likelihood of possible outcomes and that our decisions result from the interrogation of relevant data/information. However, the impact of our emotional state dictates our behaviours. If we were all rational we would save in our younger years, take a long-term view regarding investing and plan future financial decisions. Today we want to discuss the learnings from behavioural economics on financial decision making.
This is important to us in the pension sector as over the next ten years retiring employees will primarily receive their replacement income from defined contribution pension schemes. An analysis of this indicates that the expected average pension for most scheme members will be less than thirty percent of pre-retirement income. A deeper understanding of irrational decision making may help deliver better retirement outcomes.
IAPF AGM: Prior to the seminar the IAPF Annual General Meeting will take place at 5:00pm as advised to Member Representatives.