Pensions - Articles - The role of policy through the lifecourse

 This report segments people by life stage, current level of engagement (and other characteristics) and sets out how behavioural interventions and other policy levers might be most helpful in achieving good pension outcomes.

 Daniela Silcock, Head of Policy Research at the PPI said “Behavioural nudges are increasingly being viewed as a potential means of helping people to achieve better outcomes from long-term saving though alone they are not sufficient to help everyone to realise their full potential benefit.”

 “Interventions are most effective during teachable moments, for example, financial transitions, when they are relevant to people’s current circumstances, relate to their goals and allow for simple, follow-up actions. It is also important for people to feel that their own needs and circumstances are addressed. Generally this requires personalised contact, for example via face-to-face, telephone, or web-chat interventions.”

 “The most appropriate interventions vary throughout the lifecourse. Those at younger ages benefit more from interventions aimed at increasing capability and are happier to access guidance digitally, while those at older ages might need more detailed information and interventions which accommodate declining financial capability and are likely to prefer face-to-face or telephone communications.”

 “People experiencing significant barriers to engagement or with low financial capability will be more dependent on other policy levers such as means tested benefits and saving defaults to avoid negative financial outcomes.”